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DISCOs: Rs472b loss to exchequer in one year

Our Correspondent February 26, 2026 Less than a minute read

Rate of return at 13.27% looks discriminatory when compared with 15% for DISCOs. Illustration: talha khan

ISLAMABAD:

The National Electric Power Regulatory Authority (NEPRA) released the performance report of power distribution companies (DISCOs) for the fiscal year 2024-25, revealing a cumulative loss of Rs472 billion to the national exchequer during the year.

According to the report, the losses were incurred under the heads of transmission and distribution (T&D) losses and poor recovery of electricity bills.

The report stated that DISCOs suffered losses amounting to Rs265 billion due to transmission and distribution inefficiencies during the year. Additionally, another Rs207 billion loss was recorded due to low recovery of electricity bills.

The report noted that DISCOs failed to meet their transmission and distribution loss reduction targets. NEPRA termed T&D losses as a persistent challenge for the power sector and expressed serious concern over the continued inefficiencies.

The regulatory authority also voiced concern over low bill recovery rates, stating that such losses contribute significantly to the growing circular debt in the power sector.