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ISLAMABAD: A spokesperson for Ministry of Energy while commenting on a report titled "Bleeding Discos aren't stepchildren", termed it an academic "analysis", devoid of realisation of ground realities of energy sector in Pakistan.

He said the figure of Rs 480 billion calculation is wrong. Also, nowhere in the developing world can electricity T&D losses can be 0% and collection 100%; so using that as a benchmark to make a sweeping statement will not do justice. The T&D losses are both technical (that can never be 0% in a system as large as ours) and commercial (that can also never be 0% given our socio-economic constraints).

The spokesperson added: "Nepra now allows only 13.5% T&D loss allowance, and assumes 100% Collection, in the tariff, which given the above narrated scenario at ground, is not possible.

"While enumerating the Government efforts, the Spokesperson said that we do have improvement targets for the next 2-3 years to bring the T&D losses to 15.70 % and increase collection to 95.98%, against a rising tariff that does make it more challenging indeed. Seeing from international perspective, the Government targeted figures for reduction in losses and increasing recovery are very much logical, however the Regulator should also take practical steps to re-determine the losses and recovery targets.

"CCoP has now approved the appointment of a Transaction Advisor by PC for handover of management control of the DISCOs to the private sector under a management/concession contract structure. With new & empowered BODs in place, MDs (final stages of selection), etc., we are all trying our best to bring about a sustainable change in the challenged Discos especially, whilst working in parallel on the other even more critical work streams, i.e., reducing the overall cost of generation & increasing demand."

Copyright Business Recorder, 2021

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