No Improvement in the Performance of DISCOs

Saadia Qayyum

The average distribution losses in Pakistan are 20% as none of the electricity distribution companies (DISCOs) are performing up to the mark in terms of performance criteria defined by the regulatory authority. These include both technical and non-technical losses (power theft). Except minor improvements, DISCOs haven’t improved their overall performance in the last five years. As a matter of fact, some of the companies have shown deteriorated performance.

Amongst the DISCOs, IESCO has the lowest distribution losses (9.47%) followed by GEPCO (10.97%) and FESCO (11.26%). PESCO and SEPCO are the worst performers with reported losses of 34% and 39% respectively. Punjab located companies are better performers of the lot.

Screen Shot 2017-07-17 at 5.04.07 PMSource: State of Industry Report

The government, instead of making concerted efforts to reduce distribution losses, passes on these losses to the consumers through tariff surcharges. The consumers, therefore, not only have to pay for the electricity they consume but also for…

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About Shahid Hussain Raja

An independent consultant with specialization in agriculture sector policies, food security, civil service and governance reforms, capacity building of senior government officers and prosecution of high profile corruption cases in developing countries.
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