BeNewz
Related Articles
Aftab Maken
ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has released its “State of Industry Report 2025,” painting a grim picture of Pakistan’s energy landscape. The regulator officially admitted that electricity prices have reached “unbearable” levels for the common citizen, driven by a heavy burden of taxes, surcharges, and duties.
Systematic Failure of Distribution Companies
A primary highlight of the report is the widespread failure of Power Distribution Companies (DISCOs) to meet their efficiency targets. During the fiscal year 2024-25, almost all DISCOs failed to achieve the prescribed loss-reduction goals. The Tribal Areas Electric Supply Company (TESCO) stood as the sole exception, successfully meeting its targets, while the rest of the sector lagged significantly behind.
This operational inefficiency has had a direct financial impact, with NEPRA revealing that DISCO losses contributed a staggering Rs 397 billion to the national circular debt in just one year.
Poor Governance and Operational Slump
The report singled out K-Electric, PESCO, HESCO, SEPCO, and QUESCO for exceptionally poor performance. These companies are reportedly grappling with:
- Prolonged and unannounced load-shedding.
- Critically low recovery of bills and mounting arrears.
- Systemic delays in providing new connections, meter installations, and net-metering integration.
NEPRA also highlighted a severe lack of digital data, calling it the “biggest challenge” for effective planning. The absence of comprehensive log reports has made it nearly impossible to conduct a full technical audit of the transmission system.
Underutilization of Assets and Financial Hemorrhage
In a shocking revelation regarding infrastructure mismanagement, the report noted that the Lahore-Matiari 4,000 MW transmission line—a flagship project—was utilized at only 35% capacity. Despite this low usage, the government remained contractually obligated to pay 100% of the costs.
Similarly, Thar coal-fired plants, which offer a cheaper local energy source, operated at a mere 23% to 67% of their potential. The “Take or Pay” contractual obligations meant that even as actual power generation remained low, capacity payments continued to rise, further inflating the consumer’s monthly bill.
A Sector in Crisis
The regulator warned that governance issues within state-owned enterprises have stifled growth. Most transmission projects are facing significant delays, and the lack of administrative reforms has exacerbated the crisis.
Experts warn that without immediate and drastic structural overhauls, the circular debt will continue its exponential growth. For the average Pakistani, this translates to a cycle of rising tariffs and deteriorating service quality, making basic electricity a luxury rather than a right.
