ISLAMABAD: Pakistan’s power regulator has fined two state-run utilities, slapping a Rs25 million penalty on the Peshawar Electric Supply Company (Pesco) for chronic failure to cut transmission losses and improve bill recovery, and imposing a Rs100,000 a day fine on the Quetta Electric Supply Company (Qesco) for unlawful loadshedding.
The Rs100,000 a day fine on Qesco is retroactive to April 3, 2024, a period of roughly 23 months, bringing the accumulated penalty to approximately Rs69 million.
The National Electric Power Regulatory Authority (Nepra) said Pesco failed to show any measurable improvement in transmission and distribution (T&D) losses and bill recovery performance in FY2023-24 compared to the previous year, despite receiving billions of rupees under the Electricity Loss Reduction programme. The regulator rejected Pesco’s defence blaming electricity theft, terrorism, staff shortages and higher tariffs, terming the arguments “generic” and insufficient. Nepra said a utility is responsible for collecting billed amounts regardless of tariff levels.
Nepra noted Pesco’s recovery remained stuck at 92 percent FY2023-24, well below the 100 percent benchmark.
Nepra directed Pesco to pay the Rs25 million within 15 days and submit proof of payment. It warned that failure to comply would trigger recovery under Section 41 of the Nepra Act as arrears of land revenue, along with possible additional legal action.
In a separate decision, Nepra rejected Qesco’s response to a show-cause notice regarding Aggregate Technical and Commercial Losses (AT&C)-based loadshedding. The regulator said the practice violated its directives and the legal framework governing distribution companies.
Nepra ordered Qesco to immediately cease and refrain from continuing such loadshedding. It imposed a penalty of Rs100,000 per day for each day of non-compliance, effective from April 3, 2024, until the violation is rectified to the authority’s satisfaction.
