Islamabad: The National Electric Power Regulatory Authority (NEPRA) has revealed significant issues in the electricity sector, with alarming findings in its State of Industry Report 2024.
According to NEPRA’s report, the increase in circular debt is primarily due to mismanagement by electricity distribution companies. By June 2024, the circular debt in the power sector had reached a staggering 2.39 trillion Pakistani rupees, including 900 billion rupees owed by electricity defaulters.
The report further noted that transmission losses in 2024 had increased by 18%, contributing an additional 276 billion rupees to the circular debt. Similarly, lower recovery rates from electricity consumers added another 314 billion rupees to the growing debt.
NEPRA also pointed out that subsidies provided by the federal and Punjab governments have negatively impacted the performance of electricity companies, as both governments failed to make timely payments of subsidy amounts.
To address these issues, NEPRA emphasized the need for transparency and reforms in the administrative structure of the energy sector to streamline operations and reduce inefficiencies.
