ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has imposed fines exceeding Rs110 million on four ex-Wapda power distribution companies (Discos) — Hyderabad Electric Supply Company (HESCO), Quetta Electric Supply Company (QESCO), Faisalabad Electric Supply Company (FESCO), and Gujranwala Electric Power Company (GEPCO) — for failing to meet performance benchmarks related to system losses, recoveries, and pole earthing standards.
According to NEPRA’s official orders, fines were imposed as follows: Rs10 million on HESCO, Rs40 million on QESCO, Rs10 million on FESCO, and Rs51 million on GEPCO — the latter penalised on two separate counts. The penalties were levied after completion of legal proceedings, including show-cause notices and fact-finding investigations.
The regulator initiated action after reviewing Circular Debt Reports, which revealed that electricity purchases by Discos declined by 1 per cent in FY2024 to 115,142 GWh from 116,696 GWh in FY2023, while distribution losses rose to 18.31 per cent — up from 16.84 per cent. The allowed target for FY2024 was 11.77 per cent, meaning the utilities exceeded it by 6.54 percentage points, contributing an estimated Rs276 billion to the circular debt.
Despite being allocated Rs163.1 billion in FY2024 for system upgrades, the Discos failed to curb technical and commercial losses. NEPRA noted that while power consumption declined due to high electricity tariffs, subsidy cuts, and increased solar adoption, the companies offered weak justification for poor recoveries and network inefficiencies.
HESCO was fined for issuing misleading statements to the regulator over an 18-month period, while GEPCO also faced a Rs100,000 penalty for inadequate earthing of low- and high-tension poles. NEPRA warned that continued underperformance by Discos would further strain Pakistan’s energy sector and exacerbate the circular debt crisis.
