Overview
- NEPRA’s FY2024-25 performance report says distribution companies booked Rs397 billion in combined losses driven by high T&D losses and weak bill recoveries.
- No utility met loss targets, with average T&D losses at 17.55% against an 11.43% benchmark and an estimated Rs265 billion hit from excess losses plus about Rs132 billion from under-recovery.
- Safety and service indicators deteriorated, with 118 fatalities reported and 128,096 paid applicants still awaiting connections as of June 2025.
- The Power Division rejects the report’s framing and claims FY2025 sector gains, including a Rs780 billion reduction in circular debt to Rs1,614 billion, recovery improving to 96.6% and T&D losses easing to 17.6%.
- Regulatory uncertainty persists as NEPRA’s October 2025 revised benchmarks remain unnotified and under Sindh High Court review, while the regulator urges restructuring, privatisation and rapid technology upgrades.