DISCOs Report Rs. 239 Billion Loss with Improved Collection Rates

Electricity distribution companies (DISCOs) have reported a loss of Rs. 239 billion in the first quarter of FY 2024-25, reflecting an improvement compared to the Rs. 308 billion loss during the same period last year.

This positive transition is attributed to the Power Division’s enhanced collection rates, which increased from 84 percent in the previous fiscal year to 91 percent.

However, DISCOs concluded FY 2023-24 with a total loss of Rs. 591 billion as a result of persistent issues, including non-recovery of dues and line losses, despite this progress.

In contrast, circular debt experienced a mere Rs. 11 billion increase in the first four months of FY24, which is a substantial improvement from the Rs. 301 billion increase observed during the same period last year. Power Division officials highlighted this as a sign of better financial management, though challenges remain.

Although the data suggests that progress has been made, experts emphasize that the power sector continues to encounter significant obstacles in its efforts to reduce inefficiencies and achieve long-term financial stability.