ISLAMABAD: The Power Division has expressed displeasure at the performance of two Sindh-based power Distribution Companies (DISCOs) — SEPCO (Sukkur Electric Supply Company) and HESCO (Hyderabad Electric Supply Company).
Responding to questions during a meeting of National Assembly Standing Committee on Power, presided over by Muhammad Idrees, Federal Minister for Power, Awais Leghari stated that the performance of SEPCO and HESCO is disappointing.
Power Division is using all its influence to change the incumbent Boards of both Discos but did not succeed due to political interference by the Peoples Party. Acting CEO HESCO, who is a Charted Accountant continues to occupy the office contrary to the wishes of Power Division.
Poor performance of 3 Discos earns PD’s ire
“The level of losses is decreasing in other DISCOs, but in these two Companies, the loss rate is increasing,” said the Minister.
In the last meeting of Standing Committee, acting CEO HESCO had challenged the claims of both the Minister and Ministry’s officials about losses in HESCO.
During the committee proceedings, Rana Muhammad Hayat enquired if electricity tariffs will be reduced further in the upcoming fiscal year? Nepra Chairman Waseem Mukhtar replied that as of now, the electricity rates are expected to remain the same.
Rana Hayat noted that 30 per cent tariff relief has been given to industry and asked why agriculture has not been given any concessions? Secretary Power Division, Dr. Fakhray Alam Irfan stated that the relief to the industrial sector was made possible by ending cross-subsidy.
PAC Chairman Junaid Akbar, who is also member of Power Committee stated that four months ago he had offered to personally remove illegal connections (Kundas), adding that they cooperated and yet the line losses are not decreasing.
“Because line losses aren’t reducing, consumers are without electricity for up to eight hours. The work isn’t done, yet elected representatives are blamed,” Akbar maintained.
Answering Junaid Akbar, Chief Executive PESCO stated that due to cooperation there has been significant improvement, and more is expected in the next month, adding that the power utility company provides relief on annual basis instead of monthly. He, however, was directed by the Minister for Power to extend relief in load shedding to the consumers on monthly basis.
The committee was informed that for vulnerable consumers, the price has been reduced by 48 to 50 percent. The number of such consumers is 17 million. Power Division has sought an increase in the subsidy of Rs. 294 billion for protected consumers. The burden of consumers’ subsidies for the poor falls on the middle class.
The new base electricity tariff will be implemented from July 1, 2025. The impact of the July re-basing will be reflected in the August electricity bills.
Copyright Business Recorder, 2025
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