Electricity Distribution Companies Incur Rs. 239 Billion Loss in 3 Months

Electricity distribution companies (DISCOs) reported a Rs. 239 billion loss during the first three months of the fiscal year 2024-25, down by Rs. 69 billion compared to Rs. 308 billion in the same period last year, according to the Power Division. The improvement stems from higher collection rates which reached 91 percent during the first quarter, up from 84 percent in FY24. Despite this progress, DISCOs still recorded a total loss of Rs. 591 billion in fiscal year 2023-24 due to line losses and non-recovery issues. In terms of circular debt, the first four months of FY24 saw a modest increase of Rs. 11 billion compared to an increase of Rs. 301 billion during the same period last year. The Power Division highlighted these figures as a sign of improved performance in managing circular debt compared to previous years. The results through September 2024 reflect a positive trend however the power sector still has many ways to go before achieving a net positive growth metric in the coming years.