NEPRA Report: DISCOs Cause Colossal Rs. 472 Billion Loss to National Treasury in FY 2024-25, The National Electric Power Regulatory Authority (NEPRA) has released its staggering annual performance report for the Fiscal Year 2024-25, revealing that Power Distribution Companies (DISCOs) have cost the national exchequer a massive Rs. 472 billion. The losses are primarily attributed to high Transmission and Distribution (T&D) losses and poor recovery of electricity bills.
Read More: Karachi Residents Slam K-Electric’s “Collective Punishment” Load-Shedding Policy
Incredible Losses and Under-Recovery
According to the report, the total financial impact on the energy sector has reached alarming levels due to the inefficiency of state-owned DISCOs.
-
T&D Losses: DISCOs exceeded the NEPRA-allowed loss limit, resulting in a loss of Rs. 166 billion.
-
Recovery Shortfall: Out of the total electricity billed, companies failed to recover Rs. 306 billion from consumers, further bleeding the national treasury.
Worst Performing Companies
The report identifies specific regions where the power crisis is most severe. PESCO (Peshawar), SEPCO (Sukkur), and QESCO (Quetta) remain the worst performers, with recovery rates significantly below the required benchmarks. Even the relatively better-performing DISCOs in Punjab showed a decline in efficiency compared to the previous fiscal year.
Circular Debt and Impact on Consumers
These losses are a major driver of the ballooning circular debt, which continues to paralyze Pakistan’s economy. To cover these inefficiencies, the government often resorts to:
-
Power Tariff Hikes: Consumers are burdened with “Fuel Price Adjustments” and “Surcharges” to bridge the financial gap.
-
Planned Load-Shedding: Areas with high losses face prolonged power cuts as a “punishment” for low recovery.
NEPRA’s Recommendations
The regulator has expressed serious concerns over the lack of investment in infrastructure and the failure to stop electricity theft. NEPRA has recommended the privatization of DISCOs or the introduction of provincial-level management to ensure accountability and reduce the burden on the federal government.
