Loss of 472 billion rupees to the public exchequer in one year


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The return rate of 13.27% seems discriminatory compared to 15% for DISCOs. Illustration: talha khan

ISLAMABAD:

The National Electric Power Regulatory Authority (NEPRA) released the performance report of power distribution companies (DISCO) for the financial year 2024-25, revealing a cumulative loss of Rs 472 billion to the national exchequer during the year.

According to the report, the losses occurred on account of transmission and distribution (T&D) losses and poor recovery of electricity bills.

The report stated that DISCOs suffered losses worth Rs 265 billion due to inefficiencies in transmission and distribution during the year. Additionally, another loss of Rs 207 billion was recorded due to poor recovery of electricity bills.

The report noted that the DISCOs failed to meet their transmission and distribution loss reduction targets. NEPRA termed T&D losses as a persistent challenge for the power sector and expressed serious concern over continuing inefficiencies.

The regulatory authority also expressed concern over low bill recovery rates, stating that such losses contribute significantly to the growing circular debt in the power sector.

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