ISLAMABAD: Power distribution losses across the country’s distribution companies (Discos) declined from 18.3 per cent in FY2023-24 to 17.6pc in FY2024-25 and further to 17.2pc in FY2025-26, according to data submitted to the National Assembly.
The losses were valued at Rs276 billion in FY2023-24, Rs265bn in FY2024-25 and Rs262bn in FY2025-26, according to the data provided by Minister for Energy (Power Division) Awais Ahmad Leghari in response to a question by MNA Sanjay Perwani.
The lawmaker had sought details of the total transmission and distribution losses recorded by each Disco during the last three financial years and the steps being taken by the government to reduce the losses. The data showed that the Quetta Electric Supply Company (Qesco) recorded the highest loss ratio in FY2025-26 at 60.2pc, compared with 38.4pc in FY2024-25 and 29.8pc in FY2023-24. Its losses were valued at Rs82bn in FY2025-26, up from Rs52bn in FY2024-25 and Rs37bn in FY2023-24. The Peshawar Electric Power Company (Pesco) recorded the second-highest loss ratio in FY2025-26 at 40.7pc, compared with 37.1pc in FY2024-25 and 38.1pc in FY2023-24. In monetary terms, Pesco losses stood at Rs85bn in FY2025-26, Rs87bn in FY2024-25 and Rs97bn in FY2023-24.
The Sukkur Electric Power Company (Sepco) recorded losses of 38.5pc in FY2025-26, compared with 39.2pc in FY2024-25 and 34.9pc in FY2023-24. The corresponding monetary losses were Rs34bn, Rs36bn and Rs29bn. The Hyderabad Electric Supply Company (Hesco) reported losses of 25.7pc in FY2025-26, compared with 27.9pc in FY2024-25 and 27.6pc in FY2023-24. Its financial losses were Rs20bn, Rs27bn and Rs23bn, respectively.
The Lahore Electric Supply Company (Lesco) recorded losses of 12.2pc in FY2025-26, down from 13.7pc in FY2024-25 and 15.9pc in FY2023-24. Its losses in monetary terms stood at Rs26bn, Rs35bn and Rs48bn, respectively. The Multan Electric Power Company (Mepco) reported losses of 12.4pc in FY2025-26, compared with 13.8pc in FY2024-25 and 15.3pc in FY2023-24. Its losses were valued at Rs6bn, Rs14bn and Rs23bn, respectively. The Gujranwala Electric Power Company (Gepco) recorded losses of 10pc in FY2025-26, down from 10.6pc in FY2024-25 and 11.5pc in FY2023-24. Its losses were Rs6bn, Rs5bn and Rs9bn, respectively. The Faisalabad Electric Supply Company (Fesco) posted losses of 8pc in FY2025-26, compared with 9pc in FY2024-25 and 9.9pc in FY2023-24. The monetary value of its losses was Rs1bn, Rs3bn and Rs5bn, respectively.
The Islamabad Electric Supply Company (Iesco) recorded losses of 7.9pc in FY2025-26, compared with 8.6pc in FY2024-25 and 8.9pc in FY2023-24. Its losses stood at Rs2bn, Rs5bn and Rs6bn, respectively. The table showed the Tribal Areas Electricity Supply Company (Tesco) recording losses of 8.1pc in FY2025-26, compared with 8.3pc in FY2024-25 and 8.6pc in FY2023-24. Its monetary figure was shown as negative Rs0.5bn in both FY2025-26 and FY2024-25, and negative Rs0.2bn in FY2023-24.
The Power Division explained in a written reply that the Tesco’s actual distribution losses remained below the limits allowed by the National Electric Power Regulatory Authority (Nepra) during the relevant years, resulting in savings. The Hazara Electric Supply Company (Hazeco), which was unbundled from Pesco in FY2025-26, recorded losses of 15.9pc during that financial year, with the monetary figure shown as zero in the table. The Power Division said the government was taking several measures in the Discos to reduce losses, including construction of new grids and upgradation of existing grid stations. Other measures included area planning and bifurcation of overloaded 11kV feeders, augmentation and addition of power and distribution transformers, and installation of aerial bundled cables to control electricity theft.
The Discos were also replacing undersized conductors, defective capacitors, and old, sluggish and defective meters. The Power Division stated that Automated Meter Reading (AMR) and Advanced Metering Infrastructure (AMI) meters were being installed, while anti-theft campaigns were also being conducted to reduce administrative losses.
Meanwhile, the government paid Rs6.406 trillion in capacity payments to power producers over the five years from FY2020-21 to FY2024-25, with annual payments rising by nearly 194 per cent during the period, the National Assembly was informed on Friday.
The figures were presented by Minister for Energy (Power Division) Awais Ahmad Leghari in a written response to a question by Dr Mahreen Razzaq Bhutto seeking details of annual capacity payments made to independent power producers (IPPs) and savings achieved through renegotiated agreements. According to the data, capacity payments stood at Rs613.924 billion in FY2020-21 and increased to Rs775.893bn in FY2021-22. The payments surged to Rs1.307 trillion in FY2022-23 and reached Rs1.902tr in FY2023-24 before declining slightly to Rs1.807tr in FY2024-25. The five-year payments comprised Rs613.924bn in FY2020-21, Rs775.893bn in FY2021-22, Rs1.307tr in FY2022-23, Rs1.902tr in FY2023-24 and Rs1.807tr in FY2024-25.
It was stated in the written reply that, following the efforts of the government task force, power purchase agreements with six IPPs had been terminated. The minister said agreements with other power producers had also been revised to reduce tariffs and these measures resulted in overall savings of Rs4.3tr spread over the remaining life of the contracts. The government has been renegotiating power purchase agreements as part of its efforts to reduce electricity costs and address the burden of capacity payments on the power sector.
In a written reply to a question submitted in the National Assembly Secretariat by MNA Bashir Khan, Leghari informed the National Assembly that Rs2.939 trillion were booked against power procurement from generators during the first 11 months of the financial year 2025-26. Bashir Khan had sought details of payments made to IPPs, the quantum of electricity supplied by them, the duration of their agreements and the country’s power supply situation. Leghari said the amount of Rs2.939 trillion related to power procurement during July 2025-May 2026, while the billing for June 2026 was still under process and had not yet been finalised. The minister said power producers supplied 115,206 gigawatt-hours (GWh) of electricity to the national grid during the same period.
The Power Division also rejected the assertion that agreements with IPPs would remain operational for 10 years. It dismissed the contention that the country was facing a severe electricity shortage or that solar and renewable energy initiatives were being discouraged. “The country is neither facing a shortage of electricity, nor discouraging solar/renewable energy initiatives,” the minister stated, adding that future power procurement would be undertaken through an integrated planning approach, under which renewable energy projects would be accommodated according to the Integrated System Plan.
In a written reply to another question of Sher Afzal Marwat, Leghari said power producers are paid for energy and capacity payments as per tariff determined by the Nepra and in compliance with terms and conditions of their respective Power Purchase Agreements (PPAs). It was stated that therefore, there is no excess payment to the power generator in addition to tariff determined by the Nepra or payments allowed under their respective PPAs.
