The Dhaka Power Distribution Company (DPDC), formerly known as Dhaka Electric Supply Authority (DESA), according to a news report, unearthed pilferage of around 111 million units of electricity by 62 industrial units, commercial establishments and residential houses over a period of last one month.
A taskforce of the DPDC also realised Tk 24 million during the period in fines from power pilferers. The drive against illegal power connections was conducted in some areas of Dhaka and Narayanganj. The value of the pilfered power would be at least 40 to 50 times more than the amount realized in fines. Moreover, the DPDC raids covered only selected places. One can guess well what would be the outcome if such raids were conducted countrywide with due seriousness.
What would be the extent of power pilferage that is officially recognised as 'system loss'? Officials concerned would tell a figure, in terms of system loss, that any ordinary citizen would not believe. The actual system loss would be less than 20 per cent of the total power generated in the country.
A section of unscrupulous employees and officers of the DPDC are involved in power pilferage. If not, how can 242 shops in a Chashara (Narayanganj) market use electricity without paying bills for 'many' years? The value of pilfered electricity, according to DPDC estimate, is over Tk 192 million. The DPDC taskforce has obviously snapped power connection following detection of illegal use of power. However, as observed in similar cases, the connection might have been restored by the same unscrupulous DPDC employees within days after the taskforce raid.
That the makeshift shops on footpaths and illegal small-scale commercial and industrial units are being provided with electricity through illegal connections is a common scene in Dhaka or any other city and town of the country. There is no hide and seek about it. All concerned are aware of it, but no visible action is taken.
But the situation is altogether different when someone seeks to get power connection, legally, to his/her residence or business or industrial establishments. The applicant concerned is asked to furnish all the necessary documents and construction plans, approved by the relevant authority, to get power connection. In some cases, the payment of 'speed money' is required to avoid hassles. However, in the case of illegal connections, consumers concerned are required to pay a lump sum in bribes to dishonest employees of the power distribution companies initially and later such illegal payments are made on monthly basis. Obviously, the illegal power consumers are not subjected to any other hassle.
Of course, there is some loss of electricity for technical reasons, both in generation, transmission and distribution stages. Such loss is universally accepted and its extent is largely dependent on the efficiency level of power plants and quality of transmission and distribution network. Bangladesh power systems have been facing problems in all those areas. But power loss due to technical reasons is far below what is found in record books.
A reasonable cut in loss incurred on account of pilferage could have helped the government keep power tariff at an affordable level as far as subscribers are concerned. Since 2009, the government has hiked power rates at least half a dozen times due to rise in gas tariff and purchase of substantial volume of power from rental power plants at high prices.
In fact, subscribers have been, unjustifiably, paying more than what is due against the use of power. The tariff could be reasonably lower than the prevailing one had the government tried seriously to reduce pilferage of electricity and buy the same from rental power plants at competitive prices. It is widely believed that the prices of power procured from rental plants could be substantially less had the relevant agencies been sympathetic towards the cause of consumers.
The hike in power rates does not affect the illegal users of the same since they pay bribe to employees via some local musclemen at a fixed rate and on a monthly basis. But the genuine subscribers have no respite from the trouble of frequent hike. The power rates are likely to undergo another upward revision if the current move to increase the tariff of natural gas for all types of consumers gets approval of the energy sector regulator, the Bangladesh Energy Regulatory Commission (BERC). Another hike would only increase the woes of fixed-income people who have seen their power bills going up relentlessly in recent years. The power situation has improved a lot, primarily because of the entry of the controversial rental power plants. But the high cost the consumers have been paying for such improvement cannot be overlooked.
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