Nepra dismayed by higher Lesco losses

Nepra-tariff

ISLAMABAD: The power sector regulator, National Electric Power Regulatory Authority (Nepra) has expressed total dissatisfaction over the performance of Lahore Electric Company Limited (Lesco) and stated that its losses are significantly higher against the allowed losses by Nepra.

During a public hearing on a petition filed by the Lesco for allowing multi-years’ tariff from the fiscal year 2023-24 to 2027-28 on Tuesday, the senior officials of the Nepra remarked that Lesco’s actual losses are 11.3 percent against allowed eight percent by the regulator. They further stated that the consumer base of Lesco is very high and its one per cent loss costs Rs5 billion, and if these are counted, the losses of Lesco are more as compared to the losses of HESCO and QESCO. “So this is a very wrong perception that Lesco is very good in performance terms.”

Performance audit of BoDs of LESCO, FESCO, GEPCO ordered

Additionally, there is a general perception that Distribution Companies (Discos) are not interested in the installation of an advance metering infrastructure (AMI) to reduce the power sector losses. The officials regretted that things are not getting improved. The Nepra officials were surprised to know that Lesco has not got conducted its audit.

The Nepra also raised a serious question of Re1 being collected by the LESCO on account of TV charges fee and inquired from the officials of Lesco as to what has been the justification for this collection and questioned whether it was allowed by the regulator.

For the public hearing, the regulator has notified all stakeholders, interested/ affected persons and the general public that Lesco has filed a petition for the determination of its tariff for the distribution of electric power for the fiscal year 2023-24 to the fiscal year 2027-28 and the same has been admitted by the authority.

The total units for fiscal 2023-24 are projected to receive 31,545 GWh units, 3,153 units of transmission and distribution losses which is 10 percent, and units delivered 28,393 GWh.

All stakeholders and interested/ affected persons were also informed that in order to arrive at a just and informed decision, the authority has also decided to hold a hearing on the subject matter.

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