Electricity: IESCO top performer company in reducing losses

Ibn-e-Ameer

Islamabad: Electricity is surplus now what policymakers say. However, electricity theft continues by energy companies. Islamabad Electric Supply Company (Iesc0) has emerged as a top performer in reducing the losses during the ongoing financial year 2020-21.

Among all other distribution companies, its losses stand at the lowest level which turns Iesco as top performer company among the electricity companies.

The best-performing electricity firm- Islamabad Electric Supply Company (IESCO), is in the federal capital that suffers from the lowest electricity theft rate of 8.80 percent.

Hyderabad Electric Supply Company (Hesco) falls in the second category, facing a higher electricity theft rate of 28 percent. It operates in Sindh Province. Quetta Electric Supply Company (Qesco) stands in the third category, facing the highest losses of 22.60 percent. In this scenario, Iesco is top performer company which losses are at the lowest level compared to other power firms.

The electricity theft in the power sector of Pakistan continues to plague the entire energy chain in the current financial year 2020-21 leading, to the worst energy crisis.

The power distribution companies in the two provinces-KPK and Sindh, are still suffering from the highest rate of electricity theft.

Peshawar Electric Supply Company (Pesco) in KPK has beaten all other distribution companies in electricity theft which is 35.10 percent in the financial year 2020-21.

The higher rate of electricity theft major reason for the rising circular debt that has touched Rs 2.3 trillion marks in January this year. This is likely to touch Rs 2.5 trillion by end of June this year.

The higher electricity losses in the power sector have disturbed the entire energy chain. They are not only causing higher electricity rates but they are also interrupting the smooth supply of electricity to the consumers.

The average rate of electricity theft is 17 percent in the current financial year 2020-21. The PTI government plans to reduce them further in the next financial years in order to curtail the circular debt.

Recovery of electricity bills

Power plants supply electricity to Central Power Purchasing Agency (CPPA) at 100 percent capacity. However, a major chunk of electricity disappears while distributing to the consumers due to electricity theft and low recovery of electricity bills. The power distribution companies need to recover 100 percent of bills from the consumers to avoid the build-up of circular debt.

Since 2013, different governments have been making efforts to improve the recovery of electricity bills. But they have not succeeded so far. Even, the present government of PTI has also made efforts to improve the recovery of bills but it is still a dream.

Recovery of electricity bills stood at 89.6 percent in the year 2013 which went up to 94.1 percent in the year 2016-17. However, it dropped again to 90.1 percent in the year 2018 when the PTI government came into power. It has remained at 90.3 percent during the present government. However, it also wants to enhance recovery in the coming years.