ISLAMABAD: The Power Division has grilled Sukkur Electric Supply Company (SEPCO), Hyderabad Electric Supply Company (HESCO) and Quetta Electric Supply Company (QESCO) for poor performance, whereas, other Discos received appreciation for good and very good performance.
In a letter to CEO SEPCO, the Power Division has cited reference of meeting presided over by Power Minister Sardar Awais Khan Leghari on April 07, 2025 to review progress of Discos.
According to the letter, it was observed with grave concern that the performance of the Disco with respect to T&D losses and recovery remains well below the targets agreed upon between the Power Division and SEPCO, as well as the performance benchmarks set by NEPRA.
Nepra proposes ‘key’ structural changes in Discos
This persistent underperformance is a matter of serious concern and is adversely impacting the overall financial sustainability of the power sector and reflects very poorly on the affairs of State Owned Enterprises.
“The continued shortfall in recovery and high T&D losses not only reflects poor administrative performance but also exacerbates the circular debt situation, placing additional strain on the national exchequer.
Despite repeated instructions and the availability of various support mechanisms, the inability of these Discos to meet even the minimum recovery benchmarks is unacceptable and undermines the broader reform efforts underway in the power sector,“ Power Division said adding that in case the current trend continues, there is a strong likelihood that the T&D and recovery targets set till June 2025 may not be achieved, which calls for immediate and focused corrective measures from the management and the board equally.
The Power Division has directed the SEPCO CEO to take immediate corrective measures to improve performance and ensure strict compliance with the agreed targets and NEPRA benchmarks.
A detailed action plan along with timelines may also be submitted to this office within seven days has also been sought.
The IESCO, GEPCO, FESCO, MEPCO outperformed their targets and LESCO PESCO have also archived their targets.
Copyright Business Recorder, 2025
Comments