By SKM
January07, 2025
ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) here on Tuesday expressed its reservations over the business plan of Quetta Electric Supply Company (QESCO) amounting to Rs80 billion for five years from FY26 to FY30, knowing the bitter fact that the recovery of the said DISCO is less than 50 percent.
The Authority came up with these comments while hearing the petition of QESCO seeking the approval of Rs80 billion distribution investment plan. NEPRA placed a big question mark on the business plan of QESCO depends upon the subsidy from the government and loans and what alternative the DISCOs will have if the federal government withdraws subsidy and loans. The regulator also highlighted that the delay in projects like transmission grid stations will have adverse impacts on the consumers.
However, during the hearing, QESCO management said that it’s 6 percent projects are financed through 47 percent resources (24 percent from the federal government and 23 percent from the provincial government). The Authority asked QESCO to brief about its financial health and free cash flow position.
NEPRA also mentioned that transmission and distribution losses increased to Rs36.7 billion with 29.77 percent from 14.04 percent. QESCO says the agriculture tube wells consume 70 percent electricity for which the federal and provincial government extends the subsidy.
QESCO provides electricity for 4-8 hours to agriculture tube wells. However, the process to solarize the tube wells is underway and once it is completed, the tube wells will go off the grid. However, the regulator asked QESCO to create harmony between load forecast and solarization. Ends
