High losses and Power Theft: Govt offers KPK to take control of Tesco, Pesco

Staff report

The federal government has warned the government of Khyber Pakhtunkhwa to take over the supply of power in the TESCO and Pesco regions due to high losses and power theft in case it does not support taking action against those involved in power theft.

In a letter sent to Chief Minister KPK, Sardar Awais Ahmad Khan Laghari Minister for Power division said that PESCO and TESCO operate in the province of Khyber Pakhtunkhwa.

These two organizations are among the low-performing DISCOS, contributing to the ever-increasing circular debt. During the current financial year, a combined loss of Rs. 188 billion is anticipated in PESCO and TESCO, which includes under-recovery and losses above NEPRA’s threshold.

Critical high-loss areas identified in PESCO include D.I Khan, Bannu, Karak, Kohat, Shangla, and Ex-FR regions. TESCO operates in former tribal areas where there is a serious problem of non-recovery and non-meterization, leading to an anticipated loss of 51 billion in the current financial year.

“You would appreciate that the sustainability of the power sector is becoming questionable due to such revenue bleeding and resource depletion. To address the issue of rampant theft, reduce losses, and improve recovery, the government has launched a nationwide anti-theft campaign,” the minister said.

The success of this campaign depends on the wholehearted support of the provincial government and its authorities, which is currently lacking in Khyber Pakhtunkhwa.

In this regard, your specific interest is requested to ensure that police support is available in PESCO, enabling the successful implementation of the anti-theft campaign in the province of Khyber Pakhtunkhwa to eradicate the menace of theft.

There is a challenge of weak government writ in the operational jurisdiction of TESCO.

There are two possible resolutions are proposed either the Government of Khyber Pakhtunkhwa prepares a comprehensive plan to support TESCO in its recovery and meterization drive, or the Government of Khyber Pakhtunkhwa takes over the supply of power in the TESCO region.

In this regard, the Prime Minister has recently constituted a committee under the Chairmanship of the Minister for Defence for consultative interaction with your government and other stakeholders.Power Firms Add Rs 396b to Circular Debt

The committee will commence deliberations with the provincial government very soon and intends to visit the province of Khyber Pakhtunkhwa to finalize a sustainable plan of action.

“In light of the foregoing, I kindly request you to indicate a convenient time for a meeting so that these issues can be discussed comprehensively to devise a joint strategy to improve the situation,” energy minister said.