Recommendation: Govts, not Discos, should pay for high losses areas

ISLAMABAD: The federal and provincial governments, and not the distribution companies, should pay if they want supply of electricity in high losses areas, recommended a parliamentary committee on energy on Friday.

A four-member sub-committee led by Senator Nauman Wazir Khattak finalized the recommendations to eliminate electricity theft and line losses, one of the major sources of circular debt. He said that provincial governments’ deduction, if they ask supply of electricity in high losses areas, should be done from the National Finance Commission (NFC) Award.

The committee expressed annoyance over Rs 40 billion loss occurred by PESCO in the last six months due to supply of electricity to above 80 percent theft/loss feeders on the directions of Power Division, saying it is not acceptable.

Published in Business Recorder, 11th August, 2018