Punjab’s power sector is facing a mounting crisis due to rampant electricity theft, which has escalated to Rs 2,600 crore annually, even though domestic consumers receive free electricity. In the 2023-24 fiscal year, the State Government provided 300 units of free electricity to households — a subsidy valued at over Rs 6,000 crore. Additionally, Rs 1,400 crore was spent on offering Rs 2.50 per unit rebate for consumers with loads up to seven kilowatt (kW).
Notwithstanding these significant efforts to ease the financial burden on domestic users, widespread power theft continues, creating a severe drain on the state’s finances and its power sector.
According to internal reports, Punjab State Power Corporation Limited (PSPCL) there are 20 theft-prone divisions are responsible for nearly half of the annual Rs 2,600 crore loss. These notorious divisions are primarily located in the border region, followed by the western and southern zones of the State. Tarn Taran Circle, with four divisions, tops the list of theft-prone areas. Following closely behind are Ferozepur, sub-urban Amritsar, and Sangrur circles — each comprising three theft-prone divisions. These areas represent the epicenter of Punjab’s electricity theft problem, with power pilferage showing no signs of abating.
The financial losses in some of these theft-prone divisions are particularly striking. Bhikhiwind, Patti, and Zira divisions have each recorded losses exceeding Rs 110 crore, while West Amritsar has reported losses amounting to Rs 92 crore. In total, these four divisions alone account for Rs 435 crore of the Rs 2,600 crore lost due to theft. PSEB Engineers’ Association spokesperson VK Gupta, expressed concern over the high levels of distribution losses, particularly in rural areas where theft is rampant. Six rural divisions have reported losses exceeding 50 percent, with Bhikhiwind, Patti, Zira, and West Amritsar leading the way in under-billing rates at 73.32 percent, 65.02 percent, 64.9 percent, and 62.96 percent, respectively.
The problem of electricity theft is particularly severe in Punjab's rural areas, which account for nearly Rs 900 crore of the total Rs 2,600 crore lost to theft. In urban centers, the situation is not much better, with areas such as Patti, Ajnala, Bhagta Bhai, and West Amritsar contributing to an additional Rs 400 crore in losses. In some divisions, annual revenue losses range between Rs 56 crore and Rs 113 crore, underscoring the widespread nature of the issue. The politically-sensitive regions along the state’s border are at the heart of the theft problem, with powerful local figures often shielding offenders from strict action.
A significant reason for the persistent theft in these areas is the political climate, especially in the border regions. These regions are politically sensitive, and local leaders often protect consumers involved in illegal power consumption. Engineers working for PSPCL face considerable resistance during anti-theft operations, with protests and disruptions making it difficult to curb the theft.
VK Gupta maintained that this has created a cycle of inefficiency, where political influences prevent meaningful action from being taken against offenders, further exacerbating the financial losses.
In response to the rising theft, the Punjab Government has begun taking steps to tackle the problem. In August 2023, 296 First Information Reports (FIRs) were registered at police stations across the State for cases of power theft. While this represents a move in the right direction, experts agreed that much more needs to be done to address the root causes of the problem. Anti-theft drives need to be ramped up significantly, with the full backing of the government to ensure that engineers are able to operate effectively without facing local resistance.
Recognizing the severity of the situation, the state’s Finance Minister Harpal Singh Cheema has called for urgent measures to address the growing menace of electricity theft. At a meeting with the Punjab State Electricity Board (PSEB) Engineers’ Association, Cheema highlighted the unsustainable nature of the losses, while noting that the government allocates Rs 6,000 crore annually as a subsidy for domestic consumers, while the theft of Rs 2,600 crore offsets much of this financial aid.
Cheema assured PSPCL engineers that the government is fully committed to support their efforts in curbing theft. “The current level of power theft is unsustainable and must be dealt with immediately,” he said.
To combat electricity theft more effectively, the PSEB Engineers’ Association has proposed strict punitive measures. One of the key suggestions is to debar consumers caught stealing electricity from receiving any government subsidies. The Association believed that such a measure would serve as a powerful deterrent, discouraging illegal consumption and helping to recover some of the lost revenue. At the same time, PSPCL engineers acknowledged that this will require strong political will to break the cycle of protectionism and corruption that shields offenders from facing consequences.
Subsidy Burden: A Growing Challenge
Punjab's power sector is also burdened by the state’s massive subsidy allocation, which exceeds Rs 18,000 crore annually. PSPCL is struggling to manage these subsidies, particularly since Rs 3,600 crore in non-payment is still pending from various government departments. Without stricter enforcement and more aggressive anti-theft measures, PSPCL’s financial stability will remain precarious, and the state’s energy sector could suffer further losses.
Despite the challenges, PSPCL engineers remain committed to intensifying their efforts to curb electricity theft. With the Government pledging its support, the engineers are hopeful that coordinated action between local authorities, engineers, and law enforcement will lead to a significant reduction in power theft.
Minister Cheema reiterated that tackling electricity theft is a shared responsibility, emphasizing that only through joint efforts can the State secure its energy resources and ensure the sustainability of its power sector.
