The National Electric Power Regulatory Authority (Nepra) has raised serious concerns over the Quetta Electric Supply Company’s (Qesco) operational and financial inefficiencies, as the utility’s transmission and distribution losses escalated to Rs36.7 billion in FY2024.
During a public hearing, Nepra officials revealed that Qesco’s transmission and distribution losses increased from 14% to 29.77% while the company’s recovery ratio plunged to just 32% in fiscal year 2024, contributing to cumulative losses of Rs102.99 billion.
The hearing, chaired by Nepra’s chairman, examined Qesco’s proposed five-year investment plan worth Rs80 billion for fiscal years 2025–2029. The plan outlines funding sources, including 47% from Qesco’s internal resources, 24% from federal and provincial contributions, 23% from loans, and 6% from consumer funds.
Nepra, however, expressed doubts about Qesco’s ability to effectively implement the plan, citing its deteriorating financial performance despite past investments.
Agricultural consumers, who account for 70% of Qesco’s electricity consumption, rely heavily on government subsidies, receiving 4 to 8 hours of power for tube wells daily. Nepra emphasised the importance of integrating solarisation efforts into Qesco’s load forecasts to reduce dependency on grid electricity.
The regulator also criticised delays in critical transmission grid projects, warning that such setbacks would escalate costs for consumers.
The hearing concluded with Nepra demanding immediate corrective measures to address the risks posed by Qesco’s underperformance.
