Shortfall of over Rs1,075bn revealed in electricity

Islamabad: A shortfall of more than Rs1,075 billion has been revealed in the purchase and sale of electricity in the country.

According to the document, Rs275 billion will be collected from electricity consumers from rebasing this financial year, and an additional subsidy of Rs228 billion will be provided to reduce the revolving debt.

The losses of electricity distribution companies have been revealed to be 18.3 percent against the National Electric Power Regulatory Authority (NEPRA) target of 11.4 percent. Timely assurance of rebasing and circular debt management plan will also be discussed with the International Monetary Fund (IMF), similarly, the Circular Debt Management Plan will be approved by the Federal Cabinet and the IMF.

The document stated that the recoveries of Rs66 billion will be improved by reducing the losses of the Distribution Companies (DISCOs), 358 billion of the allocated subsidies will be given to the Independent Power Producers (IPPs) and government power plants, and the revolving credit will be Rs2,430 billion by the end of the financial year.

Over the past two years, the revolving debt of the power sector has increased by Rs140 billion. The losses of DISCOs will be reduced from 18.3 percent to 17.3 percent. 7.8 percent losses for Islamabad Electric Supply Company (IESCO), 14.5 percent for Lahore Electric Supply Company (LESCO), and 11.8 percent loss target has been set for Gujranwala Electric Power Company (GEPCO).

8.4 percent for FESCO, 13.9 percent for Multan Electric Power Company (MEPCO), 35.7 percent for Peshawar Electric Supply Company (PESCO), 27.2 percent for Hyderabad Electric Supply Company (HESCO), 26.8 percent for Quetta Electric Supply Company (QESCO), and 34 percent for Sukkur Electric Power Company (SEPCO) are the target losses.

It is further stated in the document that the target of increasing DISCOS recoveries to 90 percent for the year 2024-25 has been set. coordination will be increased from all institutions to implement the circular debt management plan.