ISLAMABAD: The two Sindh-based power distribution companies (Discos), Hesco (Hyderabad Electric Supply Company) and Sepco (Sukkur Electric Power Company), have submitted their Distribution Investment Plans (DIPs) totaling Rs 146.780 billion for the period of 2025-2030, aiming to improve their systems.
According to the Minister for Power, Sardar Awais Khan Leghari, the cumulative financial losses of both companies amount to approximately Rs 130 billion per annum. However, their boards have yet to be reconstituted due to political considerations.
Both Discos have submitted their investment plans in accordance with Section 32 of the Nepra Act, Regulation 14 of the Nepra Licencing (Distribution) Regulations 2022, and the Nepra Tariff Guidelines 2015. The National Electric Power Regulatory Authority (Nepra) is scheduled to hold a hearing on the DIPs of both Discos on February 27, 2025.
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Hesco, in its plan has sought approval of Rs 90.657 billion investment during the next five years. Of this, the proposed investment on account of STG is Rs 57360 billion, DOP, Rs 1.789 billion, ELR, Rs 11.005 billion, civil works, Rs 2.386 billion, earthing and grounding Rs 4.2 billion, GIS mapping, Rs 400 million, APMS, Rs 1.8 billion, TRW-workshop, Rs 610 million, fire and safety equipment, Rs 90 million, bucket and mounted vehicles, Rs 1.350 billion, 11KV sectionaliser Rs 75 million, AMI/AMR, Rs 1.645 billion, IT equipment and ERP/ data Rs 760 million, HHU, Rs 52 million, vehicles Rs 1.787 billion, model Sub Division, Rs 2.750 billion, consultancy and software purchase Rs 405 million and furniture and office equipment Rs 803 million.
According to DIP, Hesco intends to investment Rs 26.277 billion in 2025-26, Rs 22.485 billion in 2026-27, Rs 15.742 billion in 2027-28, Rs 15.127 billion in 2028-29 and Rs 11.026 billion in 2029-30.
Sepco, in its DIP has sought NEPRA’s approval for investment of Rs 56.130 billion in five years on its distribution system and infrastructure. Of total proposed investment of Rs 56.130 billion, Rs 20.554 billion will be meant for STG(own), Rs 3.322 billion on STG(loan), Rs 11.477 billion on DOP/ELR(loan), Rs 14.074 billion on other functions (own) and Rs 3.491 billion on account of other functions( own).
The Nepra has been apprised that Rs 12.927 billion will be invested in 2025-26, Rs 12.911 billion in 2026-27, Rs 17.351 billion in 2027-28, Rs 7.802 billion in 2028-29 and Rs 5.139 billion in 2029-30.
The Nepra argued that to proceed further in matters of both Discos i.e. Hesco and Sepco and to arrive at a just and informed decision, it has decided to conduct a public hearing.
Copyright Business Recorder, 2025
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