Pesco tops list as Discos wasted over 200 billion units worth Rs3,344bn

ISLAMABAD: In the decade spanning from 2013 to 2023, there has been a staggering 243 per cent surge in losses incurred by electricity distribution companies (Discos) in Pakistan. Over this period, a substantial 205 billion units, equivalent to 3,344 billion rupees, were squandered by these distribution entities. Additionally, from 2013 to 2023, the national treasury suffered a significant setback, with losses amounting to 1,173 billion rupees due to electricity theft and line losses, according to an official document available with the Hum Investigation Team (HIT).

The document underscores that the Peshawar Electric Supply Company (Pesco) leads the pack in this concerning trend, closely followed by the Lahore Electric Supply Company (Lesco), with the Multan Electric Supply Company (Mepco) securing the third position in terms of electricity wastage.

Taking a closer look at the annual statistics, in 2013, a substantial 15 billion units of electricity, valued at 161 billion rupees, were lost, with an additional 63 billion rupees disappearing due to non-recovery. Pesco ranked first among the culprits, accounting for 3 billion lost units, Lesco came in second with 2 billion units, and Multan Supply Company was in the third position, losing 2 billion units.

In the following year, 2014 witnessed the loss of 16 billion units of electricity, valued at 205 billion rupees, along with a staggering 95 billion rupees lost due to non-recovery. Pesco was still at the forefront with 4 billion units lost, Lesco retained its second position with 2.5 billion units, and Multan Supply Company trailed closely in the third position, losing 2.4 billion units.

The trend continued in 2015 when 17 billion units of electricity, amounting to 215 billion rupees, were lost, accompanied by a non-recovery-induced loss of 87 billion rupees. Once again, Pesco led with a loss of 406 crore units, followed by Lesco with 268 crore units lost, and Multan Supply Company with 236 crore units in the third spot.

Electricity theft reporting cell established

In 2016, the wastage persisted, with 16.8 billion units of electricity, worth 207 billion rupees, going down the drain, further exacerbated by non-recovery losses of 61 billion rupees. Pesco maintained its position at the top, shedding 4 billion units, while Lesco clung to second place with 2.8 billion units, and Multan Supply Company was third, shedding 2.5 billion units.

Subsequent years witnessed a similar pattern, with losses and non-recovery persisting, causing substantial financial setbacks for the national treasury. The document further revealed that in 2017, 17.8 billion units of electricity, valued at 216 billion rupees, were lost, with non-recovery compounding the loss by an additional 56 billion rupees. Pesco remained at the forefront with 4 billion units lost, followed by Lesco with 2.8 billion units, and Multan Supply Company with 2.7 billion units.

In 2018, the figures escalated, with a staggering 21 billion units of electricity, worth 254 billion rupees, slipping through the cracks, and non-recovery dealing a crippling blow of 94 billion rupees to the national exchequer. Pesco continued its unfortunate streak with 5.4 billion units lost, Lesco held its second position with 3.3 billion units, and Multan Supply Company was third, losing 3 billion units.

The subsequent years of 2019 and 2020 painted a grim picture, with both years witnessing substantial losses, amounting to billions in rupees and millions of units wasted. Pesco consistently ranked first, Lesco second, and Multan Supply Company third in these disheartening statistics.

Moving into 2021 and beyond, the losses continued to mount. In 2021, a staggering 21 billion units of electricity, valued at 368 billion rupees, were lost, with an additional 20 billion rupees lost due to non-recovery. Pesco retained its lead, followed by other major players, contributing to the disconcerting trend.

As we approach the current year, 2023, a harrowing 19 billion units of electricity, worth a staggering 612 billion rupees, have already been lost. This catastrophic loss has inflicted a record-breaking blow of 216 billion rupees on the national exchequer, all due to non-recovery.

Electricity distribution companies attribute these escalating losses to factors such as heightened electricity consumption, diminished recovery rates, line losses, and rampant theft – challenges that continue to plague Pakistan’s energy landscape.