Nepra Fines Sepco Rs70M, Hesco Rs25M

Islamabad, August 12, 2025, 02:55 PM PKT — The National Electric Power Regulatory Authority (Nepra) has delivered a stern blow, slapping fines totaling Rs95 million on Sindh-based power distributors Sukkur Electric Power Company (Sepco) and Hyderabad Electric Supply Company (Hesco) for exceeding loss targets, poor recovery rates, and safety violations in FY24, as per official findings. Sepco faces a Rs50 million fine (plus Rs20 million for ungrounded poles and safety lapses), while Hesco was hit with Rs25 million, following Nepra’s Circular Debt Report FY24, which flagged national electricity losses surging to 18.31% from 16.84% (versus a 11.77% target), adding Rs276 billion to the circular debt despite Rs163.1 billion for network upgrades.

Sepco’s transmission and distribution (T&D) losses climbed to 34.91% from 34.43%, costing Rs29.1 billion (up from Rs20.4 billion), while Hesco’s losses rose to 27.62% from 27.53%, with financial losses jumping to Rs23.2 billion from Rs15.1 billion. Recovery rates stagnated at a national average of 92%, with unrecovered amounts swelling to Rs315 billion from Rs236 billion, Sepco dropping to 65% (Rs38 billion unrecovered from Rs27 billion), and Hesco missing targets. Both failed to justify their show-cause notices, citing high prices, weak socioeconomic conditions, political interference, and electricity theft, which Nepra dismissed as exaggerated. Web context on power sector fines shows recurrent issues, while posts found on X reflect frustration—some demand accountability, others question enforcement. Critically, the narrative of “enforcing accountability” may mask systemic inefficiencies—web data hints at chronic losses, and X sentiment suggests distrust in lasting reform, pointing to persistent challenges.