Qesco on top of list with Rs75.6b less recoveries.
ISLAMABAD - Ex-Wapda Distribution Companies (XWDISCOs) have caused a loss of over Rs 838 billion to the national exchequer/consumers on account of transmission distribution losses and under recoveries during the previous fiscal year.
Four Punjab based Discos topped the list with Rs 309.14 billion losses, on account of transmission and distribution losses and under recoveries, followed by two Discos of Khyber Pakhtunkhwa with Rs 206.76 billion, two Discos of Sindh Rs 141.96 billion and one Disco of Balochistan with Rs 121.76 billion, official documents available with The Nation reveal. The losses of over Rs 838 billion include Rs 533.52 billion of transmission and distribution losses on account of losses/theft and approximately Rs 305 billion on account of under recoveries.
Discos in Punjab have burdened the consumers and national exchequer with Rs 309.14 billion on account of losses and under recoveries. There were transmission and distribution losses of Rs 217.14 billion and Rs 92 billion on account of under recoveries. As per the documents, Lesco has incurred 11.29 percent losses against the target of 8.07 percent which has an impact of Rs 76.43 billion, Gepco incurred 8.01 percent losses having an impact of Rs 32.07 billion, Fesco 8.59 percent having an impact of Rs 42.95 billion, Mepco 14.22 percent having an impact of Rs 65.69 billion, Pesco 37.40 percent with an impact of Rs 168.59 billion, Hesco 27.48 percent having an impact of Rs 46.540 billion, Qesco 26.72 percent with an impact of Rs 46.16 billion, Sepco 34.39 percent having an impact of Rs 40.62 billion billion, Tesco 9.02 percent having an impact of Rs 4.87 billion, while Iesco incurred losses 8.05 percent loss with an impact of Rs 9.3 billion. On less recoveries, Qesco is on the top of the list with Rs 75.6 billion less recoveries, followed by Lesco Rs 32 billion, Hesco 28 billion, Pesco and Sepco Rs 31 billion respectively, Mepco 21 billion, Fesco 18 billion, Tesco Rs 7.1 billion, and Gepco Rs 6.8 billion. Interestingly, AJK comes under the service area of Iesco but the government documents showed it separately with Rs 41 billion under recoveries. Discos have incurred 16.45 percent transmission and distribution losses in 2022-23, which were 4.64 percent higher than the Nepra allowed 11.81 percent. The under recoveries are not being charged from the consumers and are transferred to the circular debt. While losses have two types, one is the Nepra allowed target for losses, while the other is over and above the Nepra’s allowed target. The losses within Nepra approved target is being transferred to the electricity consumers, while those over and above the target are being added into circular debt. In 2022-23, Discos incurred transmission and distribution losses of Rs 533.52 billion, out of which Rs 353.52 billion is within the target limit, and will be charged from the consumers in their electricity bills, while the remaining Rs 160 billion, which are over and above the Nepra approved target, will be added to the circular debt. In 2022-23, two Discos in Punjab including Gepco and FESCO incurred losses less than Nepra target. However, even then it has incurred over 8 percent losses, which will be transferred to the electricity consumers.