Pakistan Agriculture News

Pakistan power sector losses will bulge to Rs360 billion in 2018

Power sector losses in 2013 stood at Rs120 billion when system losses were at 19 percent

ISLAMABAD: As the government tall claims of ending power outages continue, Pakistan’s power sector losses are expected to touch Rs360 billion in 2018.

Despite an increase in power supply availability, not enough decrease has been recorded in line losses reported an English daily.

Minister for Power Sector, Sardar Awais Ahmed Khan Leghari said in a statement due to rise in electricity generation, the country would have to digest Rs360 billion losses yearly despite 1.2 percent reduction in line losses.

He added, although surplus capacity was now available in the system, which could help end power outages across Pakistan, provided there were no system losses.

But sources in the power division believe the minister was setting a launchpad for rising power outages in the future seasons, as the government and power distribution companies (Discos) have been unable to decrease system losses.

Mr. Leghari stated the economy couldn’t bear Rs360 billion losses on an annual basis and electricity theft cost couldn’t be passed on and borne by the consumers.

Minister for Power emphasized losses would have to be restricted via other ways. He didn’t offer a clear explanation, but highlighted power sector losses cannot be brought down without assistance of the provincial government and electricity consumers.

He forewarned if system losses weren’t curtailed, power outages would have to be increased in areas which were incurring high losses despite availability of excess electricity supply.

He admitted the power sector losses stood at Rs120b in 2013 when line losses were 19 percent and when power generation was 14,800 MW.

He said system losses since 2013 had been brought down to 17.8 percent.

Furthermore, the minister for power said during forthcoming power season power generation would touch 25,000 megawatts, rising 69 percent from what it was in 2013.

Mr. Leghari stated state of power distribution losses would be assessed during first or second week of March and a official announcement proclaiming an increase or not in power outages would be made in this regard.