The performance of Pakistan’s power sector deteriorated in the fiscal year 2023-24, resulting in over Rs660 billion in losses to the national exchequer, according to the National Electric Power Regulatory Authority (Nepra).
Increased inefficiencies, including high transmission and distribution (T&D) losses and low recovery rates, were cited as the main contributors.
Nepra’s annual performance report highlighted that none of the distribution companies (Discos), including K-Electric, met their targets for reducing transmission and distribution losses, improving revenue collection, or ensuring safety and reliability. Loss-based load-shedding practices, used for over a decade, were also deemed ineffective.
T&D losses alone accounted for an estimated Rs281 billion of the total losses, with PESCO, LESCO, QESCO, and SEPCO contributing Rs96 billion, Rs47.5 billion, Rs37 billion, and Rs28.7 billion, respectively. Discos’ T&D losses rose to 18.08% in FY24, exceeding Nepra’s target of 12.15% and up from 16.38% in FY23.
Revenue collection also fell short, with no Disco achieving the 100% recovery target. Punjab-based companies such as IESCO, GEPCO, FESCO, LESCO, and MEPCO had recovery rates between 96% and 97%.Â
Peshawar and K-Electric crossed 90%, while Hyderabad, Quetta, and Sukkur-based firms posted troubling rates of 76.40%, 65.41%, and 31.79%, respectively, leading to revenue losses of Rs380 billion.
The report also highlighted that all Discos failed to meet power interruption frequency and duration targets. While IESCO, FESCO, LESCO, and MEPCO showed slight improvements, others, including PESCO, GEPCO, QESCO, SEPCO, and HESCO, significantly underperformed.
Despite surplus capacity, half of the companies failed to provide timely new connections, leaving 13-14% of eligible applicants unconnected in regions served by IESCO, FESCO, and MEPCO.
Safety concerns also worsened, with 140 fatalities reported, including 34 employees and 106 members of the public. K-Electric accounted for the highest share of fatalities, followed by IESCO and PESCO. Many incidents were attributed to consumer negligence or accidents on private property.
