Nepra fines Discos over poor performance, missed recovery goals, and rising electricity losses. The National Electric Power Regulatory Authority announced fines of more than Rs110 million against four distribution companies on Tuesday. The companies include Hesco, Qesco, Fesco, and Gepco.
The regulator said these firms failed to meet performance targets such as reducing system losses and ensuring proper earthing of electricity poles. Nepra fined Hesco Rs10 million, Qesco Rs40 million, Fesco Rs10 million, and Gepco Rs51 million. Legal proceedings were completed after show-cause notices and fact-finding probes.
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According to Nepra’s report, electricity purchases by Discos dropped 1% in FY24, while power losses rose to 18.31%. The regulator noted that Discos exceeded their target by 6.54%, adding about Rs276 billion to the circular debt. This increase occurred even though companies had Rs163 billion in investment funds to improve their networks.
Discos blamed high electricity prices, reduced subsidies, and de-industrialization for declining consumption. Many consumers reportedly shifted to solar power to reduce costs. However, Nepra found weak justification for the companies’ inability to improve recoveries or control system losses.
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Nepra emphasized that poor performance by Discos hurts consumers and increases national debt. It warned that future penalties could be stricter. The Nepra fines Discos action highlights the regulator’s growing push for accountability in Pakistan’s power sector.