ISLAMABAD (MNN); Pakistan’s power distribution companies have inflicted a loss of Rs472 billion on the national exchequer in a single fiscal year due to weak operational performance, according to a fresh report issued by the National Electric Power Regulatory Authority.
The regulator’s performance evaluation for fiscal year 2024-25 revealed that distribution companies failed to achieve their targets for transmission and distribution losses as well as bill recoveries, placing a substantial financial strain on the public treasury.
According to the report, Rs265 billion of the total losses stemmed from excessive transmission and distribution losses, while another Rs207 billion resulted from poor bill recovery. Combined, these factors pushed the total annual loss to Rs472 billion.
Nepra noted that distribution companies repeatedly missed their assigned benchmarks for transmission and distribution losses, terming line losses a persistent and serious issue within the power sector.
Expressing grave concern over the increasing losses and weak recovery rates, the authority underscored the urgent need for meaningful and effective reforms in the electricity sector.
The regulator has directed all distribution companies to implement strict corrective measures aimed at enhancing operational efficiency, improving bill recovery, and ensuring better overall performance.
