Power sector cannot survive without reforms:PEW

Lahore: The Pakistan Economy Watch (PEW) of Sunday said that electric power transmission and distribution losses are increasing with an amazing speed compromising economic growth.

Pakistan is among top ten countries in the electric transmission and distribution (T&D) losses which has become a major threat, it said.

Pakistan lost 24 per cent of entire electric production in 2004, in 2010 it was ranked 23rd while in 2011 it jumped to be one of the top 14 countries among a group of 131 nations, said Dr Murtaza Mughal, President PEW.Now the country has the honour of losing almost 40 per cent of the power generated through various sources, he said.

On the other hand, he said, Bangladesh T&D losses are at 2 per cent, Finland 3 pc, South Korea and Israel 4 pc, China and Zimbabwe 6 pc, UAE and UK 7 pc, and Afghanistan 13 pc.

Dr Murtaza Mughal said that power sector’s increasing losses are not possible without collusion between authorities and public including business community.

The burden of this corruption is shifted to honest and law abiding consumers who pay their own bill every month and face frequent upward tariff revisions, he said.

Reforms are critical in order for the industry to survive which requires an aggressive strategy to punish those involved in power theft and countrywide disconnection for non-payment without discrimination.

Dr Murtaza Mughal said that one per cent distribution loss translates into Rs 6 billion annually which is sustained by frequent bailouts and upward revision of the power tariff.

He said that electricity theft is directly proportional to increase in tariff, which is almost a monthly exercise but the faulty strategy of ignoring energy efficiency and reduction in theft will not work for long, he warned.