Power theft challenge in Punjab: Survey on religious incentives to be conducted by CERP

ISLAMABAD: The Centre for Economic Research Pakistan (CERP) is to conduct a mass survey across Punjab to examine whether religious incentives can reduce power theft.

Tim Dobermann, CERP Economist, has sought help from Power Division to start the study across Punjab instead of only Kasur, an area which falls under the administrative jurisdiction of Lahore Electric Supply Company (LESCO) and is notorious with respect to electricity theft.

A team from the International Growth Centre (IGC) and CERP has been working on energy reforms in Pakistan since 2018, in collaboration with the Ministry of Energy and local partners. This project is being led by Robin Burgess (LSE), Michael Greenstone (Chicago), Tim Dobermann (LSE), Faraz Hayat (Chicago) and Usman Naeem (Tufts). The team aims to study how religious places and messaging through them can reduce theft and non-payment of electricity in rural Pakistan. The project is being conducted in collaboration with Akhuwat.

According to Dobermann, earlier, CERP had requested a support letter for a randomized controlled trial in District Kasur. However, due to an additional research grant, CERP is now able to extend the study across Punjab which will also provide more robust results with a large sample size that would provide a more representative picture of Punjab’s electricity landscape.

In this regard, CERP has requested an additional support letter extended to the whole of Punjab addressed to Chief Secretary Punjab.

On May 22, 2023, Power Division, in a letter to Chief Secretary Punjab had explained that the CERP has been partnering with the Ministry of Energy to provide evidence-based policy support to it on various matters including electricity theft and loses, tariff restructuring and subsidy analysis.

Power Division further stated that researchers from IGC-Pakistan program are planning to investigate whether religious incentives can reduce electricity non-payment and theft in Pakistan.

The letter stated that CERP wishes to carry out a Randomize Controlled Trial (RCT) in district Kasur to study the impact of such interventions. The CERP has been advised to ensure that study design respects fundamental sanctity of religion, sectarian harmony and respect for religious figures.

“Given the importance of Islam in the lives of many Pakistanis, use of religious places can be used to reinforce the moral imperative of honesty and paying for goods you use,” argued Dobermann in his letter of May 4, 2023.

CERP has already conducted a similar project in KP where the team explored the impact of financial and religious incentives on willingness to pay for electricity.

The team, in its study in PESCO had recommended the government to hire Imams as agents for preaching against electricity theft.

The team had recommended that local survey team and/ or the SDO/ DISCO officials would recruit Imams from approx. 5 biggest mosques in each feeder. These Imams would be asked to disseminate the message to all other Imams of their communities.

Copyright Business Recorder, 2023