Rs9.5tn power irregularities unearthed

AGP flags serious irregularities in NA, action urged against 72 officials

ISLAMABAD:

Financial irregularities exceeding Rs9.5 trillion have come to light in the country's power distribution companies over the past three years, according to audit reports presented in the National Assembly on Friday.

The irregularities, spanning multiple fiscal years, revealed deep-rooted inefficiencies and mismanagement in the country's energy sector, already plagued by high losses and low recovery rates.

The documents, seen by The Express Tribune, revealed that during the fiscal year 2023-24, the energy sector witnessed irregularities amounting to Rs 5,145 billion.

In the preceding fiscal years, financial discrepancies of Rs1,575 billion were reported for 2022-23, while Rs2,785 billion were documented for 2021-22.

The Auditor General of Pakistan (AGP) has flagged 111 audit objections for 2023-24 alone. Furthermore, action has been urged against 72 officials and employees identified in the said financial anomalies.

The documents further revealed that Lahore Electric Supply Company (LESCO) faced charges of Rs110 billion in irregularities, while Peshawar Electric Supply Company (PESCO) recorded Rs164 billion.

Sukkur Electric Power Company (SEPCO) reported irregularities worth Rs 221 billion, and Quetta Electric Supply Company (QESCO) topped the list with Rs 1,164 billion. The Central Power Purchasing Agency (CPPA) alone accounted for Rs 2,734 billion in financial discrepancies.

Other companies were also implicated including Faisalabad Electric Supply Company (FESCO) which reported Rs40 billion in irregularities, Gujranwala Electric Power Company (GEPCO) Rs66 billion, Hyderabad Electric Supply Company (HESCO) Rs83 billion, Islamabad Electric Supply Company (IESCO) Rs32 billion, Multan Electric Power Company (MEPCO) Rs13 billion and Tribal Areas Electric Supply Company (TESCO) Rs 16 billion.

Moreover, GENCO-I faced accusations of Rs68 billion in irregularities, while GENCO-II accounted for Rs74 billion. National Power Parks Management Company Limited (NPPMCL) was found to have discrepancies worth Rs114 billion.

It is pertinent to note that earlier this week, it was revealed that electricity supply companies saw a sharp decline in performance during 2023-24, inflicting losses exceeding Rs660 billion on the national exchequer.

The setback was driven by rising inefficiencies, including power losses and poor recovery rates. Meanwhile, private and public sector power plants added an unquantifiable but heavier burden on consumers and taxpayers.

However, in its annual performance report, the National Electric Power Regulatory Authority (Nepra) praised the nuclear power plants for maintaining high standards and strong performance.