Electricity theft, often referred to as the ‘kunda’ system (illegal hooks), is intensifying Pakistan’s energy crisis, leading to frequent outages, escalating electricity costs, and economic instability. As the nation grapples with persistent load shedding, experts point to rampant power theft as a critical contributor to the energy shortfall. Non-technical losses (NTL) — which include theft, illegal connections, and tampering with meters — are particularly problematic.
These losses are hard to track due to their widespread nature and inadequate data collection, resulting in inflated bills for paying customers and reduced efficiency across the power grid. Meanwhile, technical losses (TL), stemming from the physical limitations of transmission lines and transformers, although easier to quantify, continue to hamper system efficiency.
The 2023 State of Industry Report by the National Electric Power Regulatory Authority (NEPRA) underscores the gravity of these issues. It revealed that Pakistan’s power distribution companies (DISCOs) are grappling with severe transmission and distribution (T&D) losses.
For instance, PESCO (Peshawar Electric Supply Company) reported the highest T&D losses at 37.17 percent in the fiscal year 2022-23—far exceeding its target of 20.24 percent—leading to a financial loss of Rs 77.5 billion. Similarly, SEPCO and HESCO recorded losses far beyond their targets, collectively contributing an additional Rs 160.49 billion to the circular debt. Mehfooz Pakistan reports that both technical and non-technical losses in power distribution are further straining the already fragile energy infrastructure.
These economic losses not only place a burden on the country’s finances but also compromise the reliability of electricity supply. Areas plagued by high levels of power theft face more frequent outages, disrupting businesses and daily life. In urban and rural neighborhoods, illegal connections often create severe safety hazards, including the risks of electrocution and fires. Substandard and unregulated wiring in such setups also adds stress to the power grid, increasing the likelihood of failures and interruptions that impact essential services like healthcare and emergency response. Experts emphasize the need for a comprehensive approach to combat power theft.
This includes enforcing stricter laws, investing in advanced monitoring and metering systems, and launching public awareness campaigns to educate citizens about the dangers of illegal connections and the benefits of legal electricity access. In the long term, addressing power theft and reducing system losses could ease the financial strain on the energy sector, decrease outages, and foster a more sustainable and dependable power supply. However, achieving these outcomes will require collaboration between government authorities and the public to safeguard the efficiency, safety, and stability of Pakistan’s energy infrastructure.
