ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has imposed a combined fine of Rs95 million on two Sindh-based power distribution companies — Sukkur Electric Power Company (Sepco) and Hyderabad Electric Supply Company (Hesco) — for exceeding transmission and distribution (T\&D) loss targets, weak recovery performance, and safety violations.
Sepco was fined Rs50 million for failing to curb T\&D losses and improve recoveries during FY24, while Hesco faced a Rs25 million penalty for similar shortcomings. In addition, Nepra levied two separate fines of Rs10 million each on Sepco for failing to ensure proper grounding of electricity poles and for general non-compliance with safety protocols.
The penalties followed the findings of the FY24 Circular Debt Report, which revealed national electricity losses rose to 18.31pc from 16.84pc a year earlier, against Nepra’s allowed average of 11.77pc — adding about Rs276bn to the circular debt. Despite Rs163.1bn allocated for network upgrades, most distribution companies failed to meet targets.
Sepco’s losses climbed to 34.91pc from 34.43pc in FY23, causing a financial hit of Rs29.1bn, while Hesco’s losses inched up to 27.62pc from 27.53pc, raising its financial impact to Rs23.2bn. Recovery rates also remained a concern — Sepco’s collection dropped to 65pc from 67pc, increasing its unrecovered dues to Rs38bn.
Power Minister Sardar Awais Leghari earlier criticised both companies for lagging behind peers, blaming political interference that has stalled board reforms. Nepra said its action aims to enforce accountability and reduce the burden of inefficiencies on consumers.
