NEPRA reports Rs661bn in losses for DISCOs

According to a recent performance review report by the National Electric Power Regulatory Authority (NEPRA), electricity distribution companies (DISCOs) incurred significant financial losses surpassing Rs661 billion in the fiscal year 2023-24.

These losses were mainly attributed to non-recovery of dues and inefficiencies in electricity distribution. DISCOs experienced a significant Rs281 billion in line losses which occur when electricity is lost during transmission. 

Furthermore, there was a notable shortfall of around Rs380 billion in bill collections highlighting a failure to meet the financial targets set by NEPRA for improving the power sector’s financial health. The report revealed that none of the distribution companies achieved their target of 100 percent recovery in 2023-24. 

In addition, over 3.4 million complaints were lodged against power companies, indicating widespread consumer dissatisfaction with their services. Operational issues in the power transmission system aggravated the situation, preventing consumers from accessing cheaper electricity. 

These issues were particularly problematic during peak demand seasons when power shortages worsened. NEPRA also pointed out that cheap power plants were not utilized effectively even when electricity demand was high. 

This inefficiency in utilizing available resources further contributed to the ongoing electricity crisis.These findings emphasize the urgent need for reforms in the power sector to address inefficiencies, improve bill recovery and ensure optimal use of power plants. 

Such measures are essential to reducing the financial burden on the economy and ensuring a more reliable power supply for consumers.