Electricity Companies Lose Rs. 661 Billion in FY24 Due to Non-Recovery of Bills, Distribution Failures

Electricity distribution companies (DISCOs) suffered massive financial losses exceeding Rs. 661 billion in the fiscal year 2023-24, according to a recent performance review report by the National Electric Power Regulatory Authority (NEPRA). These losses have been attributed to several factors including non-recovery of dues and inefficiencies in electricity distribution. DISCOs incurred a staggering Rs. 281 billion in line losses. For those who do not know, line losses occur when electricity is lost during transmission. Additionally, there was a significant shortfall in the collection of electricity bills of around Rs. 380 billion. These figures indicate a serious failure to meet the targets set by NEPRA for improving the financial health of the power sector. According to the NEPRA report, no distribution company achieved its target of 100 percent recovery during 2023-24. Also, more than 3.4 million complaints were filed against power companies during the year. The report also points out that operational issues within the power transmission system deprived consumers of access to cheaper electricity. These transmission defects were particularly problematic during peak demand seasons when power shortages were too poor. NEPRA also found that cheap power plants were not utilized effectively, even during periods of high electricity demand.