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Intelligence Agencies to Help Electricity Distribution Companies Recover Dues

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Legal Editorial Desk
Intelligence Agencies to Help Electricity Distribution Companies Recover Dues
The federal government has announced plans to establish specialized units aimed at aiding power distribution companies (DISCOs) in recovering unpaid electricity bills. These support units will involve personnel from intelligence agencies such as ISI and MI, operating under the DISCOs’ CEOs and alongside a civil armed forces sector commander who will serve as co-director, reporting directly to the Power Division secretary. The proposal for these units has been forwarded to the Cabinet Committee for Energy for imminent approval. Initially, the Multan Electric Power Company (MEPCO) will pilot the first unit, with potential expansion to other cities contingent on its success. This initiative is crucial as DISCOs face the challenge of recovering Rs. 1,780 billion in outstanding dues. According to a report last year, in four districts of Khyber Pakhtunkhwa (K-P)—Bannu, DI Khan, Tank, and Shangla—100% of consumers were not paying electricity bills. Similarly, around 90% of people in districts like Pasni, Gwadar, Makran, Khuzdar, and Lorelai in Balochistan accessed electricity through illegal connections. Over a year, DISCOs purchased 116.5 billion units of electricity, selling 97.34 billion units to consumers while 19.17 billion units were lost to theft or technical deficiencies. Notably, Peshawar Electric Supply Company (Pesco) incurred significant losses, with 5.7 billion units valued at Rs77 billion stolen within a year.
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Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.

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