Islamabad: The National Electric Power Regulatory Authority (NEPRA) has released the 2024 State of Industry Report for the energy sector, revealing that electricity distribution companies (DISCOs) failed to reduce losses and improve recoveries.
According to the report, the electricity sector incurred a loss of Rs 590.51 billion over the year due to rising losses and low recovery rates. The losses of electricity companies stood at 18.31%, while the recovery rate for DISCOs was only 92.44%.
The report also highlights that the increase in losses contributed Rs 276 billion to the circular debt, while lower recoveries added Rs 314.51 billion to the debt.
NEPRA stated that during the 2023-2024 fiscal year, electricity consumers used an average of 33.88% of the total electricity, while the remaining 66.12% of unused electricity costs were still passed on to consumers.
The authority recommended that instead of disconnecting feeders, authorities should take action against defaulters.
The report further revealed that the dues of KElectric and other DISCOs have exceeded Rs 2.32 trillion. The inefficiencies of the system have led to additional taxes, surcharges, and cross-subsidies burdening the consumers.
NEPRA also pointed out that rising prices, taxes, surcharges, fees, and duties have made it increasingly difficult for consumers to afford electricity, and stressed the need for serious consideration of transferring control of electricity companies to the private sector.
