Leghari berates: Sepco, Hesco, Qesco over high losses

ISLAMABAD: Federal Minister for Power Sardar Awais Ahmad Khan Leghari on Monday berated the chief executives of the Sukkur Electric Power Company (Sepco), Hyderabad Electric Supply Company (Hesco), and Quetta Electric Supply Company (Qesco) for poor performance in recovery and high losses.

In a meeting also attended by top functionaries of the Power Division, the minister expressed annoyance over the unsatisfactory performance of Sepco, Hesco and Qesco, saying that their performance is much below the target set by the Power Division. The further said Discos have also defaulted on the targets set by the National Electric Power Regulatory Authority (Nepra). Whereas, he appreciated Iesco (Islamabad Electric Supply Company), Gepco (Gujranwala Electric Power Company), and Fesco (Faisalabad Electric Supply Company) for their excellent performance in terms of recovery and reduction in losses, saying these companies have outperformed their targets set by the Power Division.

Mepco (Multan Electric Power Company), Lesco (Lahore Electric Supply Company) and Peshawar Electric Supply Company have also achieved their targets, top official sources, who were part of the meeting, told The News.

Meanwhile, in the letters written on Monday and signed by Additional Secretary-1 to the CEOs of the three poor-performing companies, the Power Division expressed dismay over the “worst performance” with respect to T&D losses and recovery that remained well below the targets agreed upon between the Power Division and Sepco, as well as the performance benchmarks set by the Nepra.

As per a copy of the letters available with The News, the Power Division said, “This persistent underperformance is a matter of serious concern and is adversely impacting the overall financial sustainability of the power sector and reflects very poorly on the affairs of State Owned Enterprises (SOEs).”

Power Division has directed the CEOs of Sepco, Hesco and Qesco to take immediate corrective measures to improve performance and ensure strict compliance with the agreed targets and Nepra benchmarks. They have also been directed to submit a detailed action plan along with timelines to the Power Division within seven days.

“The continued shortfall in recovery and high T&D losses not only reflects poor administrative performance but also exacerbates the circular debt situation, placing additional strain on the national exchequer. Despite repeated instructions and the availability of various support mechanisms, the inability of these Discos to meet even the minimum recovery benchmarks is unacceptable and undermines the broader reform efforts underway in the power sector,” the Power Division said.