LAHORE: Pakistan had lost approximately Rs 600 billion in the form of transmission and distribution (T&D) losses during the Pakistan Muslim League-N (2013-18) tenure, said Pakistan Electric Power Company (PEPCO) sources.

Transmission and distribution (T&D) losses measure power loss in the transmission of (high-voltage) electricity from power generators to distributors and in the distribution of (medium- and low-voltage) electricity from distributors to end-users.

The T&D losses are represented as a percentage of gross electricity production. They include both technical and non-technical (or commercial) losses. The later also included un-metered, unbilled, and unpaid electricity, including theft, which could be significant in developing countries.

According to the sources, the PML-N government had sold 71,055 Giga Watt Hour (GWH) units in 2013-14 with allowed T& D losses of 15.3 percent. However, the actual losses reach 18.7 percent, an increase of 3.3 percent with impact of excess losses of Rs 39,332 million and a cumulative loss impact of 39,332 million.

In the year 2014-15, the government sold 72,642 GWH units with allowed T& D losses of 14.2 percent. However, the actual losses reach 18.7 percent, an increase of 4.5 percent with impact of excess losses of Rs 52,562 million and a cumulative loss impact of 91,894 million.

In the year 2015-16, the government sold 76,623 GWH units with allowed T& D losses of 15.3 percent. However, the actual losses reach 17.9 percent, an increase of 2.6 percent with impact of excess losses of Rs 31,865 million and a cumulative loss impact of 123,759 million.

In the year 2016-17, the government sold 81,558 GWH units with allowed T& D losses of 15.3 percent. However, the actual losses reach 17.9 percent, an increase of 2.6 percent with impact of excess losses of Rs 33,961 million and a cumulative loss impact of 157,720 million.

In the year 2017-18, the government sold 91,902 GWH units with allowed T& D losses of 16.3 percent. However, the actual losses reach 18.3 percent, an increase of 2.0 percent with impact of excess losses of Rs 29,389 million and a cumulative loss impact of 187,109 million. However, the sources have pointed out that despite implying a number of policy frameworks to reduce T&D losses, Pakistan currently have 18.2% T&D losses.

In developing countries, it may be noted that the benchmark for these losses is 10%. Apart from wasting the scarce resources of energy, these losses contribute non-payment fraction of generated energy, which is compensated by the government in the form of subsidies.

Copyright Business Recorder, 2020