T&D losses & no recoveries: Nepra slaps Rs25m fine on LESCO

The National Electric Power Regulatory Authority (Nepra) has imposed Rs 25 million fine on Lahore Electric Supply Company (LESCO) due to its failure pertaining to improvement in T&D losses and recovery in FY 2023-24 as compared to FY 2022-23. According to background information, Nepra received a Circular Debt (CD) Report for June 2024, from CPPA-G through an email on July 30, 2024. The report revealed that DISCO’s electricity purchases for FY 2023-24 were reduced to 115,142 GWh, ie, 1percent as compared to 116,696 GWh for FY 2022-23. Further, DISCO’s losses during FY 2023-24 increased to 18.31percent as compared to 16.84percent during FY 2022-23, i.e. and increase of 1.47percent. Nepra’s allowed average target of T&D losses for the FY 2023-24 was 11.77percent. Thus, DISCOs breached the target by 6.54percent. This breach of target contributed around Rs. 276 billion in Circular Debt for FY 2023-24 despite the fact that DISCOs have been allowed an investment amount of Rs. 163.1 billion for FY 2023-24 to improve their network.