Failure to cut DISCO line losses adds to consumer tariff


System losses have jumped to 17.5 per cent this year compared to 16.9 per cent in the same period last year

The government has failed to reduce the line losses of the distribution companies (DISCOs) during the last one year which has resulted in an increase of Rs 94 billion in receivables, which will be recovered from consumers by maintaining the higher tariff of the current financial year for the next year.

According to a latest report of the Ministry of Water and Power, the system losses have jumped to 17.5 per cent this year compared to 16.9 per cent in the same period last year. The government had actually planned to reduce the system losses from 18 per cent in 2013 to 16 per cent by 2015. However, the latest figures are shocking as they show an increase in the losses.

The report shows losses for LESCO at 12.2 per cent this year compared to 11.1 per cent last year. FESCO, GEPCO, IESCO and MEPCO losses slightly declined to 9.1 per cent, 9.1 per cent, 5.7 per cent and 15.7 per cent from last year’s level of 9.4 per cent, 9.5, 5.9 and 16.2 per cent, respectively.

The massive system losses of over 25 per cent remain in HESCO up to 24.9 per cent this year from 23.7 per cent last year, SEPCO down to 36.5 per cent from 37.1 per cent last year, QESCO down to 22.3 per cent from 25.2 per cent last year, PESCO and TESCO up to 34.5 per cent this year as compared to 31 per cent last year.

Experts are of the opinion that the DISCO managements increase their line losses to avoid questioning over power theft. They show line losses mostly in no go areas; however the actual reason is the faulty billing and low recovery. The power sector regulator, NEPRA has failed to come up with an effective regulatory measure to control the system losses which are being recovered from the consumers under the new tariff plan, they say.