ISLAMABAD: Despite coming to power on an energy-driven manifesto and promising that it would fix Pakistan’s power crisis, the PML-N government has been unable to rein in transmission and distribution losses, which have cost the exchequer around Rs83 billion since 2013.

According to figures presented by Water and Power Minister Khawaja Asif before the recently-concluded Senate session on Friday, the combined losses of the 10 electricity distribution companies (discos) in the country have shot up from Rs31 billion in 2013-14 to Rs52.6bn in 2014-15.

Prime Minister Nawaz Sharif and Punjab Chief Minister Shahbaz Sharif have repeatedly declared that the energy sector was their topmost priority. So far, two ministers and a horde of power sector advisers have been engaged to improve the performance of its beleaguered electricity generation and distribution networks.

The government has already started work on a plan to privatise both discos and gencos (generation companies), believing this is the only viable option to guard against continuous losses. However, as long as the entities remain in the public sector, the government cannot shirk its responsibility.

A written reply was placed before the upper house of parliament in response to a query submitted by PML-N Senator Rahila Magsi, who had sought details about the extent of electricity losses because of theft and other factors and the steps the government had taken to reverse this trend.

The power minister explained in his reply that the National Electric Power Regulatory Authority determined the tariff of all distribution companies on the basis of cost of each company’s supply. “Transmission and distribution (T&D) losses are [an] integral part of [the] power system. Such losses vary among discos due to geographical situation as well as consumer mix of each company.

“The T&D losses beyond Nepra target emerge due to inefficiency, theft and law and order situation and also varies among discos.”

As per a fact-sheet given with the response, the Lahore Electricity Supply Company suffered Rs3.7bn in T&D losses in 2013-14, which rose to Rs8.1bn the following year. Incidentally, Lesco is being run by Dr Mussadik Malik, who is also the PM’s spokesperson and has also served as caretaker minister for water and power. He was taken on board by the current government in the hope that he could bring efficiency to the ministry.

The Gujranwala Electric Power Company also showed an increase in T&D losses, which rose from Rs315 million to Rs621m over the past couple of years.

The Faisalabad Electric Supply Company, which looks after the hometown of Abid Sher Ali, the cocky state minister for water and power, lost Rs648m in the first year of this government’s tenure. This figure rose to Rs1.56bn in 2014-15.

Though a nominal increase, the Islamabad Electricity Supply Company’s losses have also risen from Rs45m in 2013-14 to Rs59m in 2014-2015.

The Multan Electric Power Company is the only Disco that has shown any improvement in reining in T&D losses, which dropped from Rs4.9bn in 2013-14 to Rs3.4bn the following year.

The performance of the Hyderabad Electric Supply Company has also dropped. In 2013-14, Hesco suffered Rs2.8bn in losses, while the next year, it lost Rs5.3bn. Similarly, the Sukkur Electric Supply Company presented a decline in its performance with T&D losses increasing from Rs6.7bn to Rs8.6bn between 2013 and 2015.

The Quetta Electric Supply Company is no different, and its losses grew from Rs3.9bn to Rs4.5bn in the same period.

Combined, the losses suffered by the Peshawar and Tribal Electric Supply Companies were staggering. During 2013-14, the two companies put up a loss of Rs7.7bn under T&D failures, which rose to a staggering Rs20.24bn in 2014-15.

Talking about the measures the government had taken to improve the power sector, Khawaja Asif said a study of technical losses – to be worked out by a third party – was in process as per the Nepra target.

Published in Dawn, September 20th, 2015

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