Business & Finance Print edition: 2026-02-20

Lesco saves over Rs138bn; T&D losses cut to 13.4pc

Published February 20, 2026 Updated February 20, 2026 05:29am

2 min

By Saeed Akhtar Baloch

Add BRecorder as a trusted
source on Google

LAHORE: The Lahore Electric Supply Company (Lesco) has reported cumulative savings of more than Rs138 billion and a significant reduction in transmission and distribution losses to 13.4 percent, according to its Performance Outlook Report covering July 2024 to December 2025.

The report was presented by Chairman Board of Directors LESCO Aamir Zia to Federal Minister for Energy Sardar Owais Ahmed Khan Leghari, outlining the company’s operational reforms, financial restructuring and digital transformation initiatives.

According to the report, transmission and distribution losses were reduced from 15.8 percent to 13.4 percent generating savings of approximately Rs36 billion. Improved billing and recovery mechanisms contributed Rs25 billion, while procurement reforms accounted for Rs77 billion in savings.

Financial restructuring efforts also include progress toward modernising Rs1 trillion revenue system aimed at curbing circular debt. Additionally, four years of pending audited accounts were cleared, and an investment policy was introduced for funds exceeding Rs150 billion.

In the domain of governance and strategic planning, LESCO developed a three-year business plan (FY2025–2028), completed GIS mapping, and integrated Advanced Metering Infrastructure (AMI) and APMS systems as part of its long-term strategic planning. Senior-level appointments were made on merit, while board committee performance was strengthened. The company also introduced performance-based incentives and expanded training programmes under its human resource reforms.

Regarding operational improvements, the utility claimed record loss reductions among distribution companies (DISCOs) and achieved a recovery rate exceeding 100 percent. A targeted campaign against electricity theft in industrial and high-risk areas further improved revenue collection.

Supply chain reforms led to a 32 percent reduction in single-phase meter prices and a 47 percent decrease in three-phase meter prices, translating into estimated savings of Rs6.1 billion per one million single-phase meters and Rs1.04 billion per 50,000 three-phase meters. In a move to enhance urban asset management, 40 kanals of prime land worth an estimated Rs800 million were recovered from illegal occupation.

Under its digital transformation drive, LESCO transitioned from manual processes to ERP-based decision-making and established an in-house data centre to support AMI operations and cyber security. Ten centralised customer service centres were set up, raising complaint resolution rates from 66 percent to over 95 percent. The CCMS+ and E-OPS systems have now been implemented across all 201 sub-divisions, the report claimed.

Read Comments