THE Water and Power Development Authority (Wapda) has been increasing the cost of electricity almost on a monthly basis now, citing increased line losses and generation cost as the main reasons. The latest bogeyman touted by Wapda is the use of solar panels by end users. However, Wapda has consistently ignored the highest contributor of losses in the system; the procurement department of all distribution companies (Discos).

The whole procurement process actually is nothing but a nexus with a number of manufacturers, suppliers and agents, which is haemorrhaging state resources at an alarming rate.

The losses incurred by the corruption and collusion of Discos far outstrip the losses incurred due to theft. Yes, you have read this right. To shield these losses from the public and those in power, a mechanism and chain of command is in place to keep all prying eyes out and away.

Consider the case of electrical cable and wire rope manufacturers. Wapda has implemented a rule stipulating that these items must be exclusively sourced from local ‘approved’ manufacturers, effectively granting a green light to a cartel that pools orders from Discos, and fixes prices with ‘mutual consent’.

The costs of these cables, as procured by Discos, surpass those of equivalent imports from China, and in some cases even in comparison with imports from Germany. The cable manufacturers, on the other hand, keep officials of Discos happy to keep the racket going.

Procurement losses attributed to these cable manufacturers dwarf line losses by a conservative factor of 1.8x. A cursory examination of procurements by Discos over the last five, perhaps even 10 years, comparing the costs from ‘approved’ local suppliers against those available in the open market or from international manufacturers would unveil the staggering scope of corruption.

Wapda officials should stop conjuring up a new bogeyman every now and then. Instead, they need to focus inwards.

Name withheld on request
Karachi

Published in Dawn, May 9th, 2024