By SKM
February 25, 2026
ISLAMABAD: Pakistan’s public sector power distribution companies (DISCOs) inflicted a massive Rs397 billion blow to the national exchequer in FY 2024–25, as high transmission and distribution (T&D) losses, weak billing recoveries, persistent load shedding, and governance gaps continued to cripple the system, according to NEPRA’s Performance Evaluation Report for 2024–25.
The report shows T&D losses alone cost Rs265.1 billion, while shortfalls in revenue collection added Rs132 billion. Despite repeated regulatory directives, not a single distribution company (DISCO) managed to bring losses within the permissible limit of 11.43 percent. Overall T&D losses hovered at 17.55 percent, a marginal improvement over the previous year, leaving the sector trapped in a cycle of inefficiency and circular debt.
The heaviest contributors were the Peshawar Electric Supply Company (PESCO) with Rs87.48 billion in losses, followed by the Quetta Electric Supply Company (QESCO) at Rs52.41 billion, Sukkur Electric Power Company (SEPCO) at Rs36.04 billion, and Lahore Electric Supply Company (LESCO) at Rs35.17 billion. K-Electric reported losses of Rs1.05 billion under the current tariff, though revised targets separating transmission and distribution losses remain under Sindh High Court adjudication.
Weak billing and collection further strained finances. While IESCO, GEPCO, FESCO, MEPCO, and LESCO achieved 100 percent recovery, HESCO and SEPCO recorded just over 74 percent, and QESCO lagged at 38.7 percent, despite slight improvement from the previous year. K-Electric’s recovery shortfall stood at Rs74.66 billion.
NEPRA also raised alarm over widespread load shedding. Despite adequate power allocation, utilities continue to resort to outages, violating the NEPRA Act and Performance Standards (Distribution) Rules, 2005. Legal proceedings and fines of Rs50 million were imposed on PESCO, QESCO, HESCO, SEPCO, and K-Electric, with daily penalties for SEPCO and HESCO. However, stay orders from the Appellate Tribunal have stalled enforcement for PESCO and K-Electric, while proceedings against QESCO continue.
The long-standing AT&C-based load shedding regime, introduced in 2013 to improve collections, has failed to deliver results. Losses remain high, and many feeders continue to experience severe outages, unfairly penalizing paying consumers for defaulters’ non-compliance.
Service delivery performance also faltered. While PESCO, IESCO, HESCO, and LESCO met the regulatory target of connecting 95 percent of new applicants on time, MEPCO and K-Electric failed to energize 13–14 percent of applicants. As of June 2025, 128,096 consumers who had paid for electricity were still awaiting connections.
Consumer grievance mechanisms revealed major disparities. DISCOs recorded over 7.4 million complaints during the year. K-Electric accounted for nearly 23 percent, while SEPCO reported only 1,627 complaints, raising concerns about transparency and underreporting. NEPRA has called for a standardized, digitalized complaint management system across all utilities.
Safety standards also deteriorated, with 118 fatalities reported — 38 employees and 80 members of the public. Investigations under Section 27A of the NEPRA Act pointed to inadequate grounding and earthing of network infrastructure as a major factor. Despite fines, recurring incidents highlight systemic negligence.
Although NEPRA has approved substantial funds for network strengthening, preventive maintenance, and advanced metering infrastructure, weak implementation across most DISCOs underscores deep-rooted governance failures, limited accountability, and managerial inefficiency. Ends
