LESCO cuts NEPRA-related loss by Rs58bn in two years
- Financial gap narrows from Rs79 billion to Rs21 billion in two years as recovery rate crosses 101%
LESCO significantly reduced its financial gap by Rs58 billion, improved its recovery rate, and achieved a record four-percentage-point reduction in distribution losses over two years.
- LESCO's significant reduction in its financial gap.
- Record improvements in recovery rates and distribution losses.
- The role of governance in power sector reforms.
The Lahore Electric Supply Company (LESCO) has slashed its National Electric Power Regulatory Authority (NEPRA)-related financial gap from Rs79 billion to approximately Rs21 billion over the past two years, saving the national exchequer more than Rs58 billion cumulatively.
During the same period, the company’s recovery rate rose to 101.05%, exceeding NEPRA’s regulatory benchmark of 100% for the first time, the Power Division (PD) said in a statement on Friday.
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“Distribution losses fell from 15.8% to 11.86%, an unprecedented four-percentage-point reduction that stands as the largest two-year loss reduction achieved by any electricity distribution company in Pakistan’s history,” PD said.
Federal Minister for Power Sardar Awais Ahmed Khan Leghari said that LESCO’s performance was “proof that sustained, data-driven oversight delivers results”.
“LESCO’s results confirm that empowered management, consistent oversight, and depoliticised governance can materially improve the financial health of Pakistan’s power sector, easing the burden of circular debt and strengthening the case for similar reform across other DISCOs,” read the press release.