KARACHI: The Auditor General of Pakistan’s report for the fiscal year 2023–24 states that the country’s electricity distribution firms (DISCOs) have caused an astounding loss of over Rs196 billion to the national exchequer in just one year.
Eight DISCOs, with losses ranging from 8.84% to 20.16%, above the loss caps set by the National Electric Power Regulatory Authority (NEPRA), according to the audit report.
After a loss of Rs133 billion, Peshawar Electric Supply Company (PESCO) was the first on the list, followed by Gujranwala Electric Power Company (GEPCO) at Rs2.87 billion, Lahore Electric Supply Company (LESCO) at Rs14.95 billion, Sukkur Electric Power Company (SEPCO) at Rs19.17 billion, and Faisalabad Electric Supply Company (FESCO) at Rs6.29 billion.
The firms’ inability to operate within NEPRA’s prescribed limits has been adversely harmed by the significant losses, which were attributed to long feeders and obsolete transmission lines.
The national treasury is now carrying a heavy financial load as a result.
The audit report was released in conjunction with NEPRA’s certification that K-Electric and all other DISCOs overcharged for power in April and June.
Since the overcharging breached NEPRA’s rules, the organization has demanded answers from the companies and instructed them to modify consumer invoices based on actual units utilized.
Under the Ministry of Energy’s orders, DISCOs implemented a new billing method in June that resulted in inflated electricity bills for over 0.3 million power consumers who were previously protected. This made the problem worse.
These customers were hit with greater fees even though they were meant to get subsidized rates or exemptions.
To emphasize the necessity for modifications to reflect actual consumption, NEPRA has also advised DISCOs not to apply late payment fees to customers who were unable to pay their inflated bills on time.
