Connect with us

Business

Power transmission, distribution losses swell to whopping Rs520 billion in FY21-22

Published

1 year ago

on

  • PESCO purchased 16,560 units and sold 10,355 units.
  • IESCO caused losses of Rs21.9 billion; purchased units stood at 13,027.
  • LESCO losses stand at 11.52%, which is equivalent to Rs72.7 billion.

ISLAMABAD: Power sector’s Transmission and Distribution (T&D) losses have surged to whopping Rs520.3 billion with Peshawar Electric Power Supply Company (PESCO) registering the highest-ever deficit of Rs153.8 billion, in just one financial year, The News reported on Monday.

The cash-bleeding power sector’s accumulated losses have crossed the defence spending of the country in the last two financial years, and there seems no sigh of relief for the masses without undertaking basic and fundamental reforms.

The question arises as to why the board members of these loss-making power distribution companies (DISCOs) are not being appointed on merit. The answer is that such appointments are used as a tool for doling out benefits to politically motivated favourites instead of making decisions on merit.

According to the official data available with The News, the total purchased units were 130,158 gigawatt hours (GWh), out of which sold units stood at 107,860 units; so the lost units stood at 22,298 units of GWh in the financial year 2021-22. The target losses of T&D are envisaged at 13.41%, but actual losses went up to 17.13% in the financial year 2021-22.

PESCO purchased 16,560 units of GWh of electricity and sold 10,355 units, so the lost units stood at 6,205 of GWh. Losses of PESCO stand at 37.47% and those went up to Rs153.8 billion in money terms in the current fiscal year. The losses of Tribal Electric Power Company (TESCO) stand at 9.33% and at Rs3.7 billion in money terms. Total purchased units stood at 2,284 units and sold units 2,071, so the lost units of electricity estimated at 213 of GWh.

The losses of Islamabad Electric Power Company (IESCO) stand at 8.18%, which caused losses of Rs21.9 billion in money terms. The total purchased units stood at 13,027 and sold units were 11,961, so the lost units of electricity were estimated at 1,066 units of GWh.

The Gujranwala Electric Power Company (GEPCO) losses stand at 9.07% to the tune of Rs24.7 billion.

The Lahore Electric Power Supply Company (LESCO) losses stand at 11.52%, which is equivalent to Rs72.7 billion. The lost units in case of LESCO are estimated at 3,264 units of GWh in the fiscal year 2021-22.

The losses of Faisalabad Electric Power Company (LESCO) stand at Rs33.4 billion, equivalent to 9.1%. The losses of Multan Electric Power Company (MEPCO) stood at higher side, amounting to Rs75.1 billion. The losses of MEPCO stand at 14.84%.

The losses of Hyderabad Electric Power Supply Company (HESCO) have gone down from 38.55% in 2020-21 to 32.88% in 2021-22 and in financial term stood at Rs45 billion.

The losses of Sukkur Power Supply Company (SEPCO) remained unchanged and stood at 35.27% in 2020-21 and 35.62% in 2021-22. In financial terms, the losses of SEPCO stand at Rs43.7 billion.

The losses of Quetta Electric Supply Company (QESCO) stood at 28.07% and in financial terms escalated to Rs46.3 billion in financial year 2021-22.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

Published

2 days ago

on

By

The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

Continue Reading

Business

SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

Published

2 days ago

on

By

The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

Continue Reading

Business

Discos report losses of Rs239 billion.

Published

2 days ago

on

By

When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

Continue Reading

Trending