The recent audit report for the financial year 2022-23 unveiled various factors contributing to a rise in electricity bills and basic tariffs.
The factors included non-standard plants, permanent defaulters, capitation payment, and electricity theft.
During the mentioned financial year, distribution companies issued bills amounting to Rs 2,302 billion to consumers. However, they could only recover Rs 1,849 billion, leading to a substantial shortfall for the companies.
Electricity theft and non-recovery rate among distribution companies were identified as a major concern, with a staggering 60% rate. This resulted in losses amounting to Rs 136 billion, a significant increase compared to the previous financial year’s losses of Rs 91 billion.
Non-standard power plants were also identified as a contributor to the financial burden on consumers, with additional costs of Rs 41 billion.
The reliance on expensive imported fuel added to the burden on the exchequer, with an audit report revealing costs of Rs 126 billion due to rising fuel prices.
Permanent defaulters were found to be a significant factor in the increase in electricity bills, with defaulters worth Rs 1,000 billion in the power sector.
The ‘capitation payment’ system was highlighted as a cause of financial instability in the power sector, adding to the overall strain on distribution companies.
The audit report also raised questions about the effectiveness of the National Electric Power Regulatory Authority (NEPRA) controls. These challenges collectively resulted in increased electricity bills and a surge in the basic tariff for consumers.
Via: Samaa
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Why still electricity is provided to defaulters ?.In case of industries, landlords, politicians they get stay orders from the courts and keep on enjoying free electricity for years. Common citizen will get threats for removal of meter even it is his property. Meter manufacturing companies increase meter speed as per distributors requirements.
In my view another major factor in the increase is Free electricity given to Wapda employees & different Government officials of Civil, Armed, Judicial serving & Retired.
Qaumi Dako, Chor Mulk Loot k Khaa gaiy…..or gareeb bijli ko taras giya,..Mufti sahibaan naay electric theft ko bilkul jiaz qarar diyaa ha….so Mera Aziz hamwatnoo Khul k Chori kro…
Mera Naam muhammad majid he ma apna Ghar ka 1 he kamana wala hu 8 log he ham khana wala or bijli ka bill bhot ara he please koi help karna wala nhi he ya mera number he please help me 03352852597
Electricity theft happens 90% of the times by active involvement of distribution company’s staff. DISCOS need to clean up their house first.
Where is the link to the report? I think it would add value to the blog.