In the fiscal year 2023-24, Pakistan’s power distribution companies (DISCOs) reported an average T&D loss of 18.08%, exceeding the National Electric Power Regulatory Authority’s (NEPRA) target of 12.15%.
DISCO-wise T&D Losses:
The performance of individual DISCOs varied, with some experiencing significantly higher losses:
PESCO (Peshawar Electric Supply Company): Approximately 38-40%
SEPCO (Sukkur Electric Supply Company): Over 35%
QESCO (Quetta Electric Supply Company): Over 25-30%
LESCO (Lahore Electric Supply Company): Around 10-12%
IESCO (Islamabad Electric Supply Company): Approximately 10-12%
These figures indicate that certain DISCOs have losses substantially higher than the national average, highlighting inefficiencies and challenges in the power distribution network.
Financial Impact:
The excessive T&D losses have had a profound financial impact:
Contribution to Circular Debt: In FY2023-24, DISCOs added approximately Rs591 billion to the circular debt due to excessive T&D losses and weak revenue collection.
Overall Financial Losses: The power sector’s inefficiencies, including high T&D losses, resulted in losses exceeding Rs660 billion during the same fiscal year.
Comparison with Net Metering Impact:
The Power Division has claimed that existing net-metering consumers are causing a nine-paisa per unit impact on average electricity costs, with a total annual impact of Rs101 billion, potentially increasing to Rs545 billion by 2034 if left unaddressed.
When comparing these figures:
Current T&D Losses: The annual financial loss due to T&D inefficiencies is approximately Rs591 billion, which is 5.85 times higher than the current impact attributed to net-metering consumers.
Projected Future Impact: Even if the impact of net-metering consumers reaches Rs545 billion by 2034, it would still be less than the current annual losses from T&D inefficiencies.
Conclusion:
The data underscores that while net-metering consumers do have a financial impact on the power sector, the losses incurred due to T&D inefficiencies are substantially higher. Addressing these inefficiencies could lead to significant financial savings and improve the overall sustainability of Pakistan’s power sector.
