The government is said to have started implementation of a three-pronged strategy to deal with the power sector quagmire, which includes an anti-theft/recovery drive, conservation through early closure of shops and negotiations with CPEC IPPs on revision in Power Purchase Agreements (PPAs).
Power Division has projected a financial loss of Rs 589 billion during 2023-24, of which Rs 387 billion will be due to less recovery. In contrast, Rs 201 billion is due to Transmission and Distribution (T&D) losses. The share of taxes in bills will be Rs 734 billion in the Rs 1.912 trillion total losses under theft/low recovery.
According to an estimate, four Discos, i.e. Iesco,Lesco, Gujranwala Electric Power Company (Gepco) and Multan Electric Power Company (Mepco), will sell 81 billion units during the fiscal year and will collect Rs3.058 trillion revenues and losses/under-recoveries will account for Rs 151 billion. Of this amount, the loss of Iesco will be Rs 41 billion, Lesco Rs 43 billion, Gepco Rs 12 billion, Fesco Rs 17 billion and Mepco Rs 38 billion.
