Power division achieves Rs193bn reduction in distribution losses

July 30, 2025 (MLN): In a major breakthrough for the energy sector, losses of power distribution companies have been reduced by Rs193 billion the first significant improvement in decades.

The development was highlighted during a meeting of the Cabinet Committee on Energy. Chairing the session, Prime Minister Shehbaz Sharif said this reduction would pave the way for the privatization of power companies.

He also praised Federal Minister for Power Sardar Awais Ahmed Leghari and his team for their role in implementing key reforms.

The committee was briefed that Lahore Electric Supply Company (LESCO) and Multan Electric Power Company (MEPCO) recorded the best performance in cutting losses.

The overall financial deficit of distribution companies improved by Rs242bn, while the circular debt flow reached Rs78bn.

The meeting was informed that the work of operationalization of the Independent System and Market Operator has been completed. 

Furthermore, market operation departments have been established in the National Transmission and Dispatch Company (NTDC) and other distribution companies.

The Cabinet Committee approved amendments to the National Electricity Plan-Strategic Directive-87.

Under the new terms, wheeling charges for electricity transmission have been fixed at Rs12.55 per kilowatt, including the bidding price.

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