At Josh and Mak International, we prioritise our clients’ awareness and understanding of the legal frameworks governing various aspects of energy consumption. This article delves into the intricacies of dishonest abstraction, consumption, or use of energy, as outlined in the Consumer Service Manual (January 2021) with clarification. We will explore the relevant legal provisions, penalties, and procedures involved in addressing such issues.
Legal Framework
The regulation of dishonest abstraction, consumption, or use of energy is critical to maintaining the integrity of energy distribution systems. The pertinent legal framework includes:
Pakistan Penal Code, 1860 (Act XLV of 1860)
Code of Criminal Procedure, 1898 (Act V of 1898)
Consumer Service Manual (January 2021)
Dishonest Abstraction and Theft of Electricity
Dishonest abstraction, commonly known as electricity theft, is comprehensively addressed under Chapter 9 of the Consumer Service Manual. This chapter outlines various forms of theft and the corresponding legal actions.
Direct Theft of Electricity
Direct theft involves unauthorised connections directly hooked to the supply line, bypassing metering installations. Such activities are not only illegal but severely undermine the revenue of distribution companies (DISCOs). According to section 9.1.1, if a person or premises is found to be hooked directly to the supply line or if the metering installation is missing, the case is processed as electricity theft
Procedural Enforcement
All cases of direct theft are handled under the provisions of the Pakistan Penal Code and the Code of Criminal Procedure. Immediate disconnection of electricity is carried out under the supervision of a concerned officer, with the confiscated materials preserved as evidence for court proceedings
Detection and Billing
For unregistered consumers, detection bills are raised based on the following calculation:
Number of Detection Units
=
Load
×
Load Factor
×
730
×
Months
Number of Detection Units=Load×Load Factor×730×Months
where:
Load refers to the connected or running load in kW.
Load Factor as per Annexure-V.
730 represents the average number of hours in a month
For registered consumers, the detection bill is assessed in order of priority based on previous consumption or future undisputed consumption if no credible past data is available
Illegal Abstraction by Registered Consumers
Indications of illegal abstraction by registered consumers include tampered seals, broken meters, or altered installations. Upon suspicion, DISCOs secure the metering installation and may install a check meter. If illegal abstraction is confirmed, a notice is issued, and the consumer is served a detection bill. The maximum period for charging detection bills is restricted to three billing cycles for general supply consumers and up to six months for others, subject to approval
Penalties and Legal Proceedings
Penalties for electricity theft are stringent. Upon confirmation of theft, DISCOs can recover losses through detection bills and initiate legal actions under the Pakistan Penal Code and the Code of Criminal Procedure. The disconnection and preservation of evidence are immediate, and the case proceeds to trial with the confiscated materials presented as proof
Consumer Obligations and Rights
Consumers are obligated to ensure the integrity of their metering installations and report any defects or tampering. Non-compliance may result in disconnection and legal actions. Additionally, consumers have the right to a fair hearing and can appeal against detection bills through review committees established by DISCOs
Criticism of the Regulatory Framework for Dishonest Abstraction, Consumption, or Use of Energy
While the regulatory framework outlined in the Consumer Service Manual (January 2021) by NEPRA aims to address the issue of dishonest abstraction, consumption, or use of energy comprehensively, several areas warrant criticism. These critiques highlight the need for improvements to enhance the effectiveness, fairness, and clarity of the regulatory framework.
1. Over-Reliance on Penal Measures:
The framework heavily relies on penal measures to deter dishonest abstraction and consumption of energy. While stringent penalties and legal actions are necessary, there should be a balanced approach that includes preventive measures, consumer education, and incentives for compliance. A more holistic approach could reduce instances of theft by addressing the root causes, such as lack of awareness or economic hardships.
2. Lack of Consumer Education and Awareness:
The regulatory framework does not place sufficient emphasis on educating consumers about the consequences of energy theft and the benefits of legal energy consumption. Comprehensive public awareness campaigns are essential to inform consumers about the legal provisions, penalties, and long-term advantages of adhering to the law. Educating consumers could significantly reduce the incidence of dishonest abstraction.
3. Ambiguity in Enforcement Procedures:
While the framework details the penalties and detection methods, it lacks clear and consistent guidelines for enforcement procedures. The steps for investigation, evidence collection, and legal proceedings should be explicitly outlined to ensure uniform application across different regions and DISCOs. Clear procedures would also protect consumers’ rights and prevent potential abuses of power by enforcement officers.
4. Inadequate Protection for Consumers’ Rights:
The framework needs to provide stronger protections for consumers’ rights during the investigation and billing processes. There should be clear provisions for consumers to appeal against detection bills and penalties, with independent review committees to ensure impartiality. Additionally, consumers should be informed of their rights and the procedures for challenging wrongful accusations of theft.
5. Inconsistent Application of Detection Bills:
The methodology for calculating detection bills, while detailed, may not always accurately reflect the actual consumption or theft. The framework should include provisions for periodic reviews and adjustments of the detection billing criteria to ensure they remain fair and representative of actual usage patterns. Moreover, the potential for arbitrary application of detection bills needs to be minimized by standardizing the process.
6. Insufficient Incentives for Legal Consumption:
To complement the punitive measures, the framework should introduce more incentives for consumers to maintain legal connections. This could include subsidies for low-income households, rewards for prompt bill payments, or discounts for consistent legal consumption. Positive reinforcement could encourage compliance and reduce the reliance on punitive measures alone.
7. High Burden on DISCOs:
The current framework places a significant operational and financial burden on DISCOs to detect and prevent energy theft. There should be mechanisms for supporting DISCOs in this role, such as technological upgrades, training for enforcement officers, and financial assistance. Enhancing the capacity of DISCOs would improve the effectiveness of the regulatory framework.
8. Potential for Abuse and Corruption:
The enforcement of penalties and the issuance of detection bills carry a risk of abuse and corruption. To mitigate this, the framework should include robust oversight mechanisms, regular audits, and transparency measures. Ensuring accountability among DISCOs and enforcement officers is crucial to maintain trust in the regulatory system.
Conclusion:
While the regulatory framework for dishonest abstraction, consumption, or use of energy in Pakistan is a necessary step to curb energy theft, it requires significant improvements to address its current limitations. By incorporating preventive measures, enhancing consumer education, clarifying enforcement procedures, and providing stronger protections for consumers’ rights, the framework can become more effective and fair. Additionally, reducing the burden on DISCOs and mitigating risks of abuse and corruption will further strengthen the system and promote legal energy consumption.
