ECC raises concerns over DISCOs’ failure to meet loss reduction targets

The Economic Coordination Committee (ECC) of the Cabinet has expressed serious concerns over the performance of the newly appointed boards of power distribution companies (DISCOs), particularly regarding their failure to meet targets for reducing transmission and distribution (T&D) losses.

According to a news report, the ECC, at a recent meeting, highlighted that despite the reconstitution of boards across most DISCOs, the target of reducing T&D losses was not met, with Lahore Electric Supply Company (Lesco) experiencing an increase in its losses. The committee emphasized the need for an effective plan to address this issue and reverse the upward trend in losses.

The ECC stressed that improving the operations of the public power utility and cutting losses should be a priority. While most of the DISCOs have made some progress under the new boards, exceptions such as Hyderabad Electric Supply Company (Hesco) and Sukkur Electric Power Company (Sepco) were noted. 

The Power Division informed the committee that the Pakistan Power Management Company (PPMC) is closely monitoring DISCOs’ performance and supporting their efforts to address these challenges.

In line with the National Electricity Policy, the newly reconstituted boards signed strategic roadmaps in February 2025. These roadmaps include measures aimed at reducing losses, improving bill collection, preventing theft, managing load-shedding, enhancing consumer services, and ensuring safety compliance. 

Additionally, initiatives like implementing Scada systems, GIS mapping, and computerized energy audits are part of the plan to improve efficiency.

The Power Division also shared updates on key initiatives being undertaken by DISCOs, including feeder rehabilitation, transformer addition, grid station expansions, capacitor installation, and the deployment of advanced metering infrastructure (AMI).

Despite these efforts, the ECC’s review raised concerns about governance and the need for improved operational transparency. As of now, all DISCOs except Hesco and Sepco have reconstituted boards. 

The ECC has directed the Power Division to continue addressing governance issues and ensure that the required steps are taken to achieve the targets set by the government.