Electricity theft in Pakistan

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Electricity theft in Pakistan or Electricity hooking in Pakistan has particular meaning throughout Pakistan, especially in Karachi and Lahore. Generally, it is used for illegal electricity connection. In Karachi, a parallel power supply has been running for years.[1]

Electricity shortage throughout Pakistan is a chronic issue. Street protests in Pakistan for electricity shutdown and poor performance are common. However, no proper solution is achieved by the protesters, instead a sweet promise is assured to the victims of electricity supply by the concerned quarters of the locality.[2][3]

Electricity theft[]

Main article: Electricity theft

Energy theft is a world issue and this white collar crime is committed elsewhere irrespective of economic stability of countries. Electricity theft of 6 billion US dollars per year was reported in 2012-13 alone in the US. A business case from a utility in Canada, BC Hydro, claims that electricity theft cost them at least 850 GWh (gigawatt-hours) or approximately US Dollar 100 million per year. In some countries, energy loss due to theft is estimated at over 35%. Legitimate customers bear the cost of electricity theft, which has grown significantly in the recent decades. The rate of stealing electricity is much higher in developing countries like Pakistan.[4][5]

In 2013 it was placed on record in the Senate of Pakistan, that in the last 5 years Pakistan had lost Rs 90 billion in electricity theft and line losses.[6]

Power supply to Karachi[]

K-Electric is a successor to KESC which was its original name for more than 70 years and was operating as a vertically integrated power utility in Pakistan. It is thoroughly integrated in generation, transmission and distribution to the whole Karachi city and its surroundings. Earlier to 1990 KESC was enjoying a good reputation. Suddenly it was placed under WAPDA control at that time company’s share with its face value in Pakistan Rupees 10/- was selling at Rs.160/- in stock market. WAPDA was ill-reputed for corruption and mismanagement. Under WAPDA control its share was trading below face value. However KESC was privatized later.[7]

Urbanization without town planning[]

BBC Delhi correspondent, besides citing different issues, one of the disclosed reasons of electricity theft was that in India poor people buy stolen power because they cannot afford to buy it.[8] In Karachi this reason can also be observed in least developed areas. According to estimates published in 2012-13, there were approximately 483 Katchi Abadis (informal settlements) in Karachi prior to 1990, the residents of such localities do not have legal right to have civic facilities and basic living provisions such as electricity/water from government departments. According to Chairman of Standing Committee on Urban Development of the Federation of Pakistan Chambers of Commerce & Industry, now it has grown to over 4,700.[9] This is a main reason, where poor and deprived people are compelled to deal with Kunda Mafia.

Monopoly and international competition[]

Electricity theft, particularly in Pakistan, can best be evaluated in the finding/study by Thomas B. Smith Department of Social and Behavioral Sciences, Zayed University, Dubai, UAE [10]

Electricity theft in its various forms can be reduced and kept in check only by the strong and assertive action of power sector organizations. The strategy and the action should be based upon a thorough understanding of the specific nature of the theft problem. As prices in poor countries rise to international levels, many consumers are trapped. Their own income is by local standards, perhaps $2 to $5 per day, but their electricity charges are the same as for a customer in Los Angeles who earns $80 per day. Under these conditions, consumers may feel that there is no alternative but to engage in electricity theft or not pay their bills. (Further)The total power sector is difficult to privatize into effective private sector enterprises because transmission and distribution are natural monopolies, and competition is essential to urge businesses to be more efficient.

Kunda as a temporary solutions[]

According to disclosing by KESC sources the Daily Times Pakistan writes:[11]

The shops that are within the petrol pump premises have legal connections, meaning that they are within the metered-consumers camp while the remaining are provided with power connections through the kunda system just for Rs 500 per month. More than half of the tyre-puncture shop owners have links with KESC's employees, who ensure that they do not suffer any consequences (alleged the sources). It is further noticed that the utility has often claimed that power shortages are due to many reasons including 35 to 40 percent line losses and 40 percent power consumption that occurs through illegal connections such as more than 200 restaurants that are opened till late at night are among the major consumers of electricity, majority of these restaurants are established on footpaths and link roads that they have encroached. Switching off the lights of these restaurants will save at least 100 MW.

Artificial reasons of theft[]

Difference in time of load-shedding: A large number of illegal ‘kunda’ connections are overloading the K-Electric. The use of kunda connections not only a cause of financial losses to K-Electric but also the main reason of frequent tripping. Among many other reasons one of the basis of getting electricity through kunda system is access of consumer to a nearby area where timing of two neighborhoods are different for load shedding.[12]

Night Matches Kunda system is also applied in Saturday night matches which is very common in Karachi. They use at least 15-20 of 500-watts bulb rods for lighting a little area of pitch.[13]

More consumption versus higher cost[]

One of the reasons for electricity theft is that middle class who due to meager resources could not bear to pay the many units consumed at a higher cost on slab to slab increase. The slabs of units consumed and electricity charges are (2015 slabs and rates):[14]

Pakistan Rupees 10.20 per unit
from 201-300 units Rs.16 per unit
for consumers of 301-700 units Rs.18 per unit (+ General sales tax and other charges)

There is strong basis for charging electricity consumption bill according to affordability of consumers (reasonable tariff for 300-500 units - this step will reduce electricity theft), incompetency of people because of resources can be noticed that even they had given no importance to a religious decree issued in 2009 prohibiting theft of electricity.[15]

Anti-theft measures by Pakistan and K-Electric[]

In 2014 President of Pakistan has issued an ordinance for defining strict punishments to electricity thieves across the country. The strategy and the action should be based upon a thorough understanding of the specific nature of the theft problem, while implementing the law against electricity thefts so as to technical loss due to pilferage and theft of electricity should not be dealt with combined.[16]

K-Electric has introduced a latest technology which will remove “Kunda system and electricity theft”. Under this program Area Bundle Cable (ABC) System has already been installed in area and entire city is to be covered with the new technology of ABC.[17] The system makes it impossible to steal electricity and K-Electric can reduce transmission and distribution loss (T&D loss) remarkably as the ABC project will install special power cables and digital power tariff meters, which are kunda and tampering proof.[18]

See also[]

References[]

  1. ^ Bashar, Amanullah (2003), "One of the major problems faced by the KESC was default in payment of electricity bills", Pakistan & Gulf Economist, vol. 12 no. 18 & 19, archived from the original on 20 November 2015
  2. ^ Declan Walsh (May 18, 2013). "Pakistan, Rusting in Its Tracks". The New York Times. Archived from the original on May 19, 2013. Retrieved November 14, 2015. natural disasters and entrenched insurgencies, abject poverty and feudal kleptocrats, and an economy near meltdown
  3. ^ PPI (June 20, 2015). "Citizens take to streets against K-Electric". Pakistan Today. Archived from the original on December 23, 2015. Retrieved November 15, 2015.
  4. ^ Peter Kelly-Detwiler (April 23, 2013). "Electricity Theft: A Bigger Issue Than You Think". Forbes Energy. Archived from the original on November 20, 2015. Retrieved November 16, 2015.
  5. ^ David Lawrence (June 19, 2013). "Sensors stop energy thieves". ABB. Archived from the original on November 19, 2015. Retrieved November 16, 2015.
  6. ^ Web Edition (March 8, 2013). "Pakistan lost Rs90 billion in electricity theft, line losses". The News, Pakistan. Archived from the original on November 20, 2015. Retrieved November 18, 2015.
  7. ^ Salahuddin Haider (June 25, 2015). "K-Electric victim of circumstances and repeated injustice". Pakistan Observer. Archived from the original on November 20, 2015. Retrieved November 16, 2015.
  8. ^ Soutik Biswas (November 15, 2013). "Why power theft in India is a complex problem". BBC, Delhi. Archived from the original on November 20, 2015. Retrieved November 15, 2015.
  9. ^ Hina Mahgul Rind (November 15, 2012). "Katchi Abadis house half of Karachi's population". The News International. Archived from the original on November 20, 2015. Retrieved November 15, 2015.
  10. ^ Smith, Thomas B. (2004), "Electricity theft: a comparative analysis" (PDF), Energy Policy, 32 (18): 2067–2076, doi:10.1016/S0301-4215(03)00182-4, archived (PDF) from the original on 2014-12-12, retrieved 2015-11-19
  11. ^ "Kunda system a major cause of load shedding, excess billing". Daily Times, Pakistan. November 6, 2008. Archived from the original on November 20, 2015. Retrieved November 12, 2015.
  12. ^ "G Area suffers due to Kunda system". The News. July 29, 2010. Archived from the original on November 20, 2015. Retrieved November 12, 2015.
  13. ^ Editors Mail (June 14, 2012). "Stealing electricity". Pakistan Today. Archived from the original on November 20, 2015. Retrieved November 12, 2015.CS1 maint: extra text: authors list (link)
  14. ^ Correspondant (August 21, 2015). "Karachi Chamber criticises increase in power tariff". The News (International). Archived from the original on November 20, 2015. Retrieved November 16, 2015. Hot topic Business page
  15. ^ Correspondent (July 13, 2009). "Pakistan 'fatwa' on power thieves". BBC News. Archived from the original on November 20, 2015. Retrieved November 16, 2015. Islamic scholars, declared the theft of electricity a sin
  16. ^ Hadi Aziz (January 1, 2014). "Pakistan approves first-ever law against electricity thefts". The Newstribe. Archived from the original on November 19, 2015. Retrieved November 18, 2015.
  17. ^ Staff Reporter (May 8, 2013). "KESC To Introduce ABC System To Avoid Electricity Theft, Kunda System". Pakistan State Times. Archived from the original on November 20, 2015. Retrieved November 12, 2015.
  18. ^ "Replacing kunda system: Power utility starts anti-theft project in Keamar". The Express Tribune. February 2, 2011. Archived from the original on November 20, 2015. Retrieved November 12, 2015.
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