Pakistan

Govt plans transformer-level shutdowns to curb electricity theft

electricity

ISLAMABAD: The federal government has announced plans to introduce a system allowing electricity transformers affected by power theft to be switched off individually, instead of shutting down entire feeders.

Federal Minister for Energy (Power Division) Awais Leghari said on Wednesday that the proposed mechanism would help minimise disruptions for law-abiding and bill-paying consumers in areas where electricity theft was detected.

In a statement, Leghari said power distribution companies would be able to disconnect only the transformer on which electricity theft was identified, rather than shutting down the entire feeder supplying multiple transformers.

“There will be no need to shut down the whole feeder,” Leghari said, adding that only the transformer where electricity theft was detected would be switched off under the proposed system.

He said the regulatory framework for the new mechanism was expected to be introduced by April or May next year.

Electricity theft and distribution losses have remained major challenges for Pakistan’s power sector, putting pressure on utilities’ finances and contributing to the cost of electricity supplied to consumers.

Distribution companies have traditionally relied on feeder-level load management in areas with high electricity theft or losses. Under this system, consumers who regularly pay their bills can also face power cuts because the entire feeder is switched off.

The proposed transformer-level system is intended to make the response more targeted by isolating areas where theft is detected while allowing electricity to continue flowing to other consumers connected to the same feeder.

Leghari also rejected suggestions that the government was imposing additional load-shedding, saying there was no additional electricity load-shedding in the country.

He said changes to the net-metering system had also prompted some consumers to install batteries, which had affected electricity consumption patterns.

Pakistan has been seeking to reduce losses across its power distribution network as part of wider efforts to improve the financial sustainability and efficiency of the electricity sector.

High transmission and distribution losses, electricity theft and poor recovery of billed amounts have remained persistent problems for distribution companies.

Fuel adjustment falls in August

Leghari earlier said measures taken by the Power Division had helped reduce the monthly fuel adjustment for electricity consumed in August 2026, saving consumers Rs10 billion.

He said the fuel adjustment for August stood at Rs1.73 per unit, compared with Rs2.581 per unit in July.

According to the minister, the August adjustment fell below Rs2.50 per unit, resulting in savings of Rs10 billion.

Leghari thanked consumers for cooperating with the government’s efforts to manage the power system, particularly by accepting several hours of load management during night-time periods.

He said consumers had supported government efforts to reduce electricity costs despite difficult conditions facing the power sector.

The government is under pressure to address structural problems in the electricity sector while containing tariffs and reducing the financial burden on consumers. Measures to curb theft and distribution losses remain central to efforts to improve the sector’s efficiency and reduce the need for broader power cuts.

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