ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet criticized the Power Division for failing to control Transmission and Distribution (T&D) losses, which have reached Rs143 billion by March 2025, exceeding monthly targets, Business Recorder reported, cited by sources.
The Finance Division is considering deducting outstanding electricity payments owed by federal and provincial government departments at source before June 30, 2025.
At a recent ECC meeting, the Power Division reported that 11 Distribution Companies (DISCOs) operate under its administrative control, governed by the State-Owned Enterprises (Governance and Operations) Act, 2023, and related policies.
Boards for most DISCOs including FESCO, IESCO, LESCO, MEPCO, HAZECO, GEPCO, PESCO, QESCO, and TESCO were reconstituted between July and August 2024. Boards for HESCO and SEPCO are in the finalization stage, with summaries submitted to the Prime Minister’s Office.
The Power Division briefed that performance monitoring mechanisms are in place for all DISCOs, focusing on operational, commercial, and financial parameters. Strategic roadmaps signed in February 2025 by DISCO leadership set targets for loss reduction, bill collection, theft prevention, and system modernization including SCADA, GIS mapping, and ERP automation.
Planned technical upgrades include feeder rehabilitation, transformer augmentation, grid station expansion, capacitor installations, and Advanced Metering Infrastructure (AMI) rollout.
Despite these measures, the ECC expressed concern that loss reduction targets remain unmet, noting an increase in losses for LESCO. The committee called for a stronger action plan.
Regarding QESCO, officials noted that 70% of losses come from agriculture tube wells, and their solarisation could reduce losses significantly.
The ECC also highlighted outstanding electricity dues from government departments and urged the Finance Division to expedite payment clearance. A mechanism is ready for deducting these dues at source once reconciled.
The ECC directed the Power Division to submit reconciled figures of government dues promptly to the Finance Division for early settlement.
