Checking power theft: New PEPCO policy still awaiting approval

‘Unified Incentive/Reward Rules 2010’ was constituted in September 2010 to stop electricity theft.

LAHORE: The policy for grant of incentives and rewards to eradicate electricity theft could not be enforced as it is still pending approval from the Pakistan Electric Power Company (Pepco) board of directors. The policy was approved by the former managing director of Pepco, The Express Tribune has learnt.

The “Unified Incentive/Reward Rules 2010” was constituted in September 2010 to eradicate electricity theft by checking, controlling and minimising theft and dishonest abstraction or consumption of electricity and recovery of receivables from permanent defaulters. Pepco had declared 2010 as the year for eradication of power theft.

According to a copy of the policy document available with The Express Tribune, employees of distribution companies (DISCOs) and Pepco will get an incentive of 10 per cent of the total recovered amount up to Rs50,000 billing. For billing above Rs500,000 this incentive will be Rs38,750 + 5 per cent (on amount in excess of Rs500,000); the preceding two will be applicable to defaulters of 1-3 years.

Recovery of billing from defaulters of 3-5 years, the incentive will be 15 per cent up till Rs50,000 recovery and on over  Rs500,000 recovery  the incentive will be Rs63,750 + 10 per cent of the amount in excess of Rs500,000. Furthermore 20 per cent of any amount recovered from defaulters of more than five years will be paid as incentive to the agent.

While common informers will be awarded Rs25,000 on recovery of billing recovery up to Rs500,000, Rs80,000 on recovery of billing up to Rs5,000,000 and Rs80,000 + 0.75 per cent will be paid on amounts exceeding Rs5,000,000.

Sources in Pepco said that the approval and enforcement of the policy in 2010 would have saved 4-5 billion units of stolen electricity in all DISCOs, while it could have set aside Pepco’s Rs40-50 billion expenses, which it had to pay under the head of electricity theft. The new policy which supersedes all old orders, rules and instructions is quite pragmatic and practical compared to the present theft eradication policy stated on the LESCO’s website namely “Policy Regarding Reward for Reporting Theft of Electricity and Incentive for Detecting Theft of Electricity”.

The theft policy stated on LESCO’s website had become impractical administratively for Pepco and DISCO’s after bifurcation of the Water and Power Development Authority in 2007.

The new policy emphasises on provision of rewards and incentives to electricity theft informers resulting in confirmed theft reports; as Pepco and DISCO officials not only raid the theft spot but also recover arrear billings through detection bills.

The new policy also binds authorities to put up a list of defaulters. The agent (authorised official assigned to recover amount) will approach the deputy manager of the concerned DISCO, who will notify the list within three days.

Managing Director Pepco Rasul Khan Mehsud said that the new policy required some amendments and after that it would be approved.

Published in The Express Tribune, January 16^th,  2011.