NEPRA report reveals fiscal fixes reduce round debt, however utility efficiency stays poor
ISLAMABAD:
Pakistan’s public-sector energy distribution corporations continued to overlook key efficiency benchmarks in FY2024-25, as extreme transmission and distribution (T&D) losses and restoration shortfalls remained the primary sources of economic stress within the electrical energy provide chain, in response to the Nationwide Electrical Energy Regulatory Authority’s (NEPRA) State of Trade Report 2025.
NEPRA information confirmed that DISCOs recorded common T&D losses of 17.55% in the course of the 12 months, far larger than the allowed restrict of 11.43%. The surplus losses created an unrecovered monetary impression estimated at Rs265 billion. Regardless of repeated targets and regulatory oversight, most utilities did not slim the hole. The report pointed to persistent inefficiencies, outdated infrastructure and weak enforcement towards theft and losses.
Restoration efficiency additionally remained under benchmarks. DISCOs achieved an general restoration fee of 96.62% towards the allowed 100%. This resulted in a restoration shortfall of about Rs132.46 billion. A number of utilities posted considerably decrease restoration ratios, with some falling under 40%. The info highlighted long-standing weaknesses in billing accuracy, assortment programs and governance buildings.
NEPRA attributed the shortfalls to widespread practices equivalent to incorrect meter readings, extreme detection billing and the issuance of payments to inactive and authorities accounts which might be unlikely to be settled. These practices inflated receivables with out producing precise money recoveries, growing monetary stress throughout the sector.
The continued underperformance of public-sector DISCOs remained a key driver of round debt accumulation. Though the general inventory of round debt declined in FY2024-25 after exceeding Rs2.39 trillion a 12 months earlier, NEPRA noticed that the discount was largely the results of fiscal measures fairly than operational enhancements. Public-sector distribution corporations remained the dominant contributors.
In contrast, Okay-Electrical (KE), the nation’s solely privatised distribution utility, didn’t add to round debt in the course of the interval beneath overview. NEPRA famous that KE absorbed the monetary impression of upper losses and decrease recoveries internally as an alternative of passing them on to the broader energy market. Nonetheless, KE shoppers continued to pay the Debt Servicing Surcharge (DSS), beneath which Rs35.76 billion was collected on behalf of the federal authorities.
Operational challenges additionally prolonged to office security. Deadly accidents throughout DISCOs and KE totalled 123 throughout FY2024-25, in contrast with 146 within the earlier 12 months. NEPRA mentioned every fatality mirrored severe deficiencies in security practices and organisational tradition, notably in public-sector utilities.
Shopper service efficiency additionally remained beneath pressure. NEPRA acquired greater than 96,000 shopper complaints via its head workplace, regional workplaces and digital platforms in the course of the 12 months. Public-sector DISCOs accounted for many unresolved instances, notably these associated to billing disputes, delayed connections and repair high quality.
In its evaluation of sector reforms, NEPRA famous that just about three many years after unbundling, most DISCOs stay government-owned, administratively managed and commercially fragile. The regulator concluded that with out significant structural reforms, round debt will proceed to be handed on to shoppers via larger tariffs and financial help.
