Power Theft

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• Delhi court awards 1-yr jail to 2 men, fine of Rs 20L each for
electricity theft
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• 5,508 power theft cases detected in Haryana

during raids over two days
 Electricity Theft
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• According to Section 135 of the Electricity Act
2003, electricity theft occurs when a person taps
electricity lines, tampers with electricity meters
or transformers or uses a device that interferes
with reading or damages equipment such as
electric meters or uses electricity for purposes
other than authorized.
 Types of electricity power theft
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• There are various types of electricity power theft
and they relate to each part of the electrical
equipment namely, a) meters, b) cables, and c)
overhead lines. Further, usage of service
connection other than for the authorized
purpose also falls under the category of theft.
 Meters
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• There can be tampering with meters and seals to stop the
mechanical disk from moving.
• Another method is to bypass the meter by illegally connecting to
the fuse thus preventing the rotating disk from moving thus
preventing recording of the consumption of energy.
• Another common method is to damage or remove the meters.
• Other methods may include opening the meter itself, without
damaging its seals and reversing the dials, a complicated
procedure that requires expert skill.
• In the case of electronic meters, a sudden electrostatic discharge
can cause either latent damage or permanent damage.
 Wires/cables
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• Wires/cables: In the case of wires and cable,
theft of electricity occurs due to illegally tapping
to bare wires or underground cables. In the case
of wires, the circuit wire is disconnected
or broken from the circuit terminal block and a
triple breaker inserted in the circuit.
 Transformers:
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• Transformers: Theft in this case refers to the
illegal terminal tapping of overhead lines on the
low voltage side of the transformer. There can be
two types of tapping: fish pole connections and
flying connections.
 Misuse or diverting service connections:
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• Electricity connections must be used for the
purpose it is authorized for. For example, if the
connection is effected for domestic purposes it is
to be used for authorized domestic premises
only. The service connection should not be
extended to other purposes like commercial
purposes, industrial purposes, construction
purposes, etc. This constitutes theft of
 Impact of electricity theft
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Electricity theft has a major impact on the electricity
system and its institutions:
a) Theft of electricity results in loss of revenue to the
utility,
b) Disturbs the local area supply, leading to
overloading of transformer creating blackouts or
brownouts,
c) Damage to property of the utility and
d) Increase in transmission and distribution losses due
to tampering of wires and cables.
 Measures to prevent power theft:
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• Smart Meters: Smart Meters are seen as an important
technological device to prevent electricity theft and help detect
and prevent tampering of electrical equipment. In general terms,
a smart meter is an electronic device that records electricity
consumption at short intervals and communicates it back on
a real-time basis to a utility for monitoring and billing. Similarly,
using smart meters, utilities can monitor households or
commercial establishments that do not pay their bills and can
shut down their services remotely. Smart meters will have in-
built tamper detection facilities which will send a real-
time notification when there is an attempt to tamper.
 Measures to prevent power theft:
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• Financial Rewards: Utility companies encourage consumers
to report electricity theft, sometimes offering big rewards
for information on any person stealing electricity. For
example, Tamil Nadu Generating and Distribution Company
(TANGEDCO) has instituted a cash award up to a maximum
of Rs. 20,000/- as an incentive for giving information on
energy theft. A cash reward is also paid to the board
employees who are in charge of detection of theft of
energy.
 Measures to prevent power theft:
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• Periodic Checks: To detect and prevent theft,
utilities undertake enforcement wherein
periodic checks are conducted. For example in
Tamil Nadu, seventeen enforcement squads
have been established across the state. In
addition to these enforcement squads, two
more squads known as flying squad/Chennai
and intelligence squads function within the
 Measures to prevent power theft:
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• Technical interventions: The Ministry of Power is also
enabling computerisation of distribution
infrastructure, feeder metering, feeder segregation
and monitoring of AT&C loss trajectories through
various schemes such as Integrated Power
Development Scheme (IPDS) and Deendayal
Upadhyaya Gram Jyoti Yojana (DDUGJY) to enable
States to improve their systems so that energy loss
including those due to theft are reduced.
 Measures to prevent power theft:
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• In India, electricity utilities lose billions of dollars each
year through theft of electricity, making it an economic
problem.
• As a result, it is necessary for the government to give
widespread publicity and awareness to citizens on power
theft.
• Further, citizens must be sensitised on aspects related to
how power theft occurs and its economic impact on the
utilities.