Power companies report Rs11 billion decline in transmission and distribution losses in FY25

Power Distribution Companies (Discos) reported transmission and distribution (T&D) losses amounting to Rs 265 billion during the fiscal year 2024-25, a decrease of Rs 11 billion compared to Rs 276 billion in FY 2023-24, according to official data.

Several Discos showed varying loss rates, with Islamabad Electric Supply Company (IESCO) recording 8.6% losses, totaling Rs 5 billion, and Lahore Electric Supply Company (LESCO) at 13.7%, with losses amounting to Rs 35 billion. 

Other significant figures include Gujranwala Electric Power Company (GEPCO) at 10.6% (Rs 5 billion), Faisalabad Electric Supply Company (FESCO) at 9% (Rs 3 billion), and Multan Electric Power Company (MEPCO) at 13.8% (Rs 14 billion). 

Notably, Peshawar Electric Supply Company (PESCO) reported the highest losses at 37.1%, totaling Rs 87 billion, while Sukkur Electric Supply Company (SEPCO) had 39.2% losses (Rs 36 billion).

Sources from the Power Division revealed that Discos’ average losses decreased from 18.3% in FY 2023-24 to 17.6% in FY 2024-25. Additionally, under-recoveries dropped from Rs 315 billion in FY 2023-24 to Rs 132 billion in FY 2024-25, with recoveries improving from 92.4% in FY 2023-24 to 96.6% in FY 2024-25.

Prime Minister Shehbaz Sharif commended the Power Minister and Power Secretary for their performance in FY 2024-25, particularly the improvement in recoveries and reduced losses. 

However, the National Electric Power Regulatory Authority (NEPRA) has raised concerns, directing its technical team to verify the reported figures, citing doubts over their accuracy.

Another issue flagged by NEPRA and brought to the Prime Minister’s attention is the Power Division’s ongoing failure to clear payments to power plants, including those under the CPEC framework, and the financial burden shifted to Pakistan State Oil (PSO) due to unused RLNG imports from Qatar.