PD rejects NEPRA’s claims about Discos performance

ISLAMABAD: The Power Division has rejected claims made by the National Electric Power Regulatory Authority (NEPRA) in its Performance Evaluation Report of Distribution Companies for FY 2024–25, saying the report does not accurately reflect the sector’s progress.
In a statement, the Power Division said that while it respects NEPRA’s oversight role, the report portrays a misleading narrative of stagnation and inefficiency, ignoring what it calls a historic turnaround in operational and financial indicators during FY 2025.
“To ensure public discourse is based on facts, we present the complete picture, including landmark reductions in circular debt and tangible improvements delivered by DISCOs,” the statement read.
According to the Power Division, circular debt was reduced by Rs 780 billion — from Rs 2,393 billion in FY 2024 to Rs 1,614 billion in FY 2025. This achievement stemmed from multiple coordinated efforts: improved DISCO performance contributed Rs 193 billion, successful LPI waiver negotiations with power producers accounted for Rs 260 billion, and macroeconomic improvements added over Rs 300 billion. “The Rs 193 billion contribution from DISCO performance reflects operational and financial discipline enforced on the ground,” the statement said.
DISCOs also improved recovery performance, with the collection rate rising from 92.4% in FY 2024 to 96.6% in FY 2025 — a 4.2 percentage point increase. The Power Division attributed this to stricter enforcement against defaulters and enhanced billing accuracy, which significantly contributed to circular debt reduction.
The financial burden of under-recovery fell sharply by Rs 183 billion, from Rs 315 billion in FY 2024 to Rs 132 billion in FY 2025 — a 42% reduction. Transmission and distribution (T&D) losses also declined from 18.3% to 17.6%, delivering savings of Rs 11 billion.
The division clarified that current economic-based load shedding aligns with the National Electricity Policy and Plan to maintain sector sustainability. Removing AT&C-based load shedding without an alternative mechanism could impose an additional annual financial burden exceeding Rs 500 billion. Efforts are underway to transition toward transformer-level targeted load shedding as part of ongoing digitalization initiatives.
“We do not deny that legacy challenges remain. However, the numbers now speak for themselves: record-high recovery rates, a 42% cut in under-recoveries, measurable reduction in T&D losses, and a historic Rs 780 billion reduction in circular debt — with DISCOs contributing Rs 193 billion of that relief,” the Power Division said. It urged NEPRA, policymakers, and the public to recognize these verified achievements as evidence that sector reforms are yielding results and that Pakistan’s power sector is on a path to recovery.