The losses of four power distribution companies (DISCOs) including Hyderabad, Peshawar, Sukkur and Quetta Electric Supplies Companies have increased during 2020-21.
According to State of Industry Report published by power regulator NEPRA, HESCO, PESCO, SEPCO and QESCO reported highest losses with 38.55%, 38.18%, 35.27% and 27.9% losses respectively.
While the losses of Tribal Electric Supply Company (TESCO), Gujranwala Electric Supply Company (GEPCO), Faisalabad Electric Supply Company (FESCO), Multan Electric Power Company (MEPCO), Lahore Electric Supply Company (LESCO) and Islamabad Electric Supply Company (IESCO) remained 9.58%, 9.23%, 9.28%, 14.93%, 11.96% and 8.54% respectively during the said period.
The actual losses of most of the DISCOs for the FY 2020-21 remained higher than the given targets of even the FY 2019-20, the report further said.
During the FY 2020-21, IESCO, GEPCO, MEPCO and PESCO reported above 100% recoveries. The worst performers were QESCO, SEPCO, HESCO and TESCO with 39.
80%, 64.48%, 75.63% and 83.27% recoveries respectively. LESCO and FESCO reported 98.72% and 97.30% recoveries during the year.
The T&D losses beyond allowed limit and recoveries less than 100% hamper the payment to transmission and generation companies.
The widening of gap between the payable and the actual payments to the transmission and generation companies was resulting in increase in the circulate debt, the report said.
The efficiency of the whole power sector depended very much on efficient distribution of electricity, the power regulator noted.
Being responsible to sell electricity to the end-consumer, the distribution sector generated cash flows to pay for the cost of distribution, transmission as well as generation of electricity.
“The efforts to build adequate generation capacity and transmission network may go futile if the units generated are not optimally delivered to the end consumers and the billed amount is not fully recovered,” it further said.
