Pakistan's power sector caused Rs403bln loss in FY2022-23: Nepra

ISLAMABAD: Pakistan’s power sector caused a Rs403 billion loss in FY2022-23, revealed the National Electronic Power Regulatory Authority (NEPRA) report on Tuesday.

The progress report of the power distribution companies including K-Electric was released by the NEPRA, indicating nine distribution companies including K-Electric failed to achieve 100pc recovery.

The line losses and low recoveries caused a loss of Rs403 bln to the national kitty, the report said. The report highlighted that the companies did not buy the electricity as per the assigned quota.

The companies carrying out loadshedding ‘deliberately’ as they are not buying electricity as per their quotas, the report said.

Citing no investment by the electricity distribution companies to improve its system, the NEPRA report has suggested changes at the administrative levels in the companies.

The NEPRA report further said the companies can be transferred to the province or can be run via public-private partnerships for the betterment of the system.

Read more: Electricity tariff increased by Rs7.5 per unit

On Monday, the National Electric Power Regulatory Authority (NEPRA) notified a hike of Rs7.5 per unit in the price of electricity as part of the fuel price adjustment (FCA).

According to NEPRA notification, the power sector’s regulatory authority approved increase in the electricity tariff by Rs7.5 per kilowatt hour (kWh) under the head FCA of January 2024 and this hike in power tariff would be charged to power consumers during March 2024.