Six Electricity Distribution Companies Asked to Recover Extra Rs83.2bn from Consumers

As the circular debt (the unpaid bills of the country’s power sector) is swelling, the government has tasked the electricity distribution companies (DISCOs) to recover an extra Rs83.2 billion from the consumers in a bid to contain the circular debt.

The government has directed six electricity distribution companies to meet the target by ensuring 100 per cent recovery of their current electricity billing, besides recovering the pending receivables for the financial year 2018-19 from the electricity consumers.

Minister for Power Division Omar Ayub Khan chaired a meeting regarding the recovery of power sector receivables.


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The meeting was attended among others by Secretary Power Division Secretary Irfan Ali, officials of Pakistan Electric Power Company (PEPCO), chief executive officers of DISCOs and other officials of the division.

The meeting discussed different strategies for improving the recovery of electricity bills and cut line losses.

It decided to freeze the figures of old receivables, as on Oct 31, 2018, with a target to achieve 100 per cent recovery of current billings.

The minister issued instructions to the chief executive officers of the power distribution companies to curb power theft in their respective areas. He asked them to take help from provincial task forces set up for the purpose in Punjab and Khyber Pakhtunkhwa.

As per the break-up of the target assigned to different DISCOs, Lahore Electric Supply Company (LESCO) has been tasked to ensure an extra recovery of Rs25 billion, in addition to the current billing up to June 2019.


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The company was further asked to take appropriate measures to recover old outstanding bill and cut line losses up to 1 per cent.

Similarly, Faisalabad Electric Supply Company (FESCO) was asked to recover an extra Rs2 billion in addition to current billing up to June 2019. The company was also told to reduce its line losses by 1 per cent.

The Gujranwala Electric Supply Company (GEPCO) is required to make an extra recovery of Rs3 billion, besides reducing line losses up to 1 per cent. Likewise, Islamabad Electric Supply Company (IESCO) has been tasked to recover an extra Rs2billion, besides bringing the line losses at NEPRA’s target of 8.65 per cent.

The Multan Electric Supply Company (MEPCO) was asked to ensure an extra recovery of Rs10.2 billion besides reducing the line losses to meet NEPRA’s target of 15 per cent.

Lastly, Peshawar Electric Supply Company was given the task of recovering an extra Rs41billion and reducing the line losses to 4 per cent, besides recovering old receivables. Officials of PESCO were directed to ensure removal of hooks within two months.