Tag: Discos

Power Sector Recovery: Discos Cut Losses by Rs69 Billion in Q1 FY25

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Chinese-power

ISLAMABAD: Pakistan’s state-run Power Distribution Companies (Discos) have achieved notable progress in the first quarter (July-September) of fiscal year 2024-25, slashing losses by Rs69 billion and boosting bill recovery rates to 91%, up from 84% in the same period last year. The Power Division reported that the growth of circular debt slowed significantly, rising by just Rs11 billion between July and October, compared to a staggering Rs301 billion increase during the same period last year. These improvements reflect enhanced financial management and operational efficiency within the energy sector. In fiscal…

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Pakistan to Implement Turkish Model for DISCOs Management, Eyeing Efficiency and Investment

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power-sector

In Islamabad, Pakistan is set to emulate the successful Turkish model by outsourcing the management of its power distribution companies (DISCOs) in a bid to curtail losses, enhance efficiency, and attract investment. Following an agreement with the International Monetary Fund (IMF), Pakistan aims to engage a transaction adviser for long-term concessions by April 2024. The World Bank has offered grant-based technical assistance and risk guarantee instruments, bolstering confidence for potential private concession holders and lenders. Additionally, the International Finance Corporation has shown interest in providing transaction advisory services. Recent discussions…

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Discos seek Rs42bn additional despite low usage in December

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power-e-unit

ISLAMABAD: In yet another blow to electricity consumers, the Central Power Purchasing Agency (CPPA) on Monday sought more than 100pc (Rs5.62 per unit) increase in fuel charges to mop up about Rs42 billion for ex-Wapda Distribution Companies (Discos) through February consumer bills and make up for subdued consumption of the most expensive electricity. This is apparently the highest-ever increase in fuel cost adjustment (FCA) demanded by the CPPA despite about 75 per cent power supply coming from domestic cheaper fuel sources in December 2023. This FCA is being sought on…

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Loss-making Discos: FD opposes PD’s proposal

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crackdown-power

ISLAMABAD: The Finance Division has reportedly opposed a proposal of the Power Division regarding establishment of Performance Management Units (PMUs) in loss-making power Distribution Companies (Discos) under senior army officers (brigadiers), arguing it will further deteriorate governance within Discos, sources close to Secretary Finance told Business Recorder. The Power Division prepared a secret proposal for the federal cabinet to hand over affairs of loss-making Discos aimed at putting pressure on existing manpower to work efficiently with proper monitoring of their financial integrity. The proposal in the form of a summary had…

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Fuel cost adjustment of Rs3.5 more per unit to further inflate bills

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Petroleum-prices

ISLAMABAD: The Cen­tral Power Purchasing Agency (CPPA) on Mon­day sought a massive Rs3.55 per unit as fuel cost adjustment (FCA) for ex-Wapda distribution comp­anies (Discos) to raise another Rs33bn from consumers in Dece­mber, des­pite a healthy 76 per cent ele­ctricity generation from cheaper domestic fuels. This comes on top of about 26pc increase in the annual base tariff and around 18pc hike under the currently implemented quarterly tariff adjustment (QTA). This means that consumers would benefit little from low consumption in December, as they would be charged such a big…

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