ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has imposed fines totaling Rs 75 million on Quetta Electric Supply Company (QESCO) and Peshawar Electric Supply Company (PESCO) for violations related to AT&C-based load shedding and failure to improve transmission and distribution (T&D) losses and recovery respectively. Qesco: During hearings on monthly Fuel Price Adjustments (FPAs) for DISCOs and K-Electric, NEPRA received multiple complaints from the public regarding unscheduled load shedding. Investigations revealed that QESCO was implementing load shedding based on its AT&C losses policy, which is not recognized under the NEPRA Act, 1997, or the Performance Standards (Distribution) Rules, 2005. READ MORE: Govt orders solarisation of high-loss PESCO, QESCO feeders The authority observed that the licensee was exceeding scheduled load shedding and failing to improve the technical and financial health of selected feeders over the past four years, despite substantial O&M allocations. Consequently, Nepra initiated legal proceedings and, through an order dated April 3, 2024, imposed a fine of Rs 50 million on QESCO under the NEPRA Act and NEPRA (Fine) Regulations, 2021, for violating Rule 4(f) of the Performance Standards (Distribution) Rules, 2005, Section 21(2)(b) & (f) of the NEPRA Act, and Article 11 of its Distribution License. Qesco filed a review, which NEPRA rejected, stating that the licensee failed to provide satisfactory evidence. The Authority directed QESCO to immediately cease AT&C-based load shedding and imposed an additional fine of Rs 0.1 million per day for each day of continued violation from the date of the original order until full compliance. PESCO: Nepra reviewed the Circular Debt Report for June 2024 from CPPA-G, which indicated that DISCO electricity purchases for FY 2023-24 fell to 115,142 GWh, a 1% reduction from FY 2022-23. T&D losses rose to 18.31% from 16.84%, exceeding Nepra’s average allowed target of 11.77% by 6.54%, contributing around Rs 276 billion to circular debt despite an investment allocation of Rs 163.1 billion for network improvements. For Pesco specifically, T&D losses increased to 38.14% in FY 2023-24 from 37.54% in FY 2022-23, raising financial losses to Rs 97.2 billion from Rs 78 billion. The licensee cited challenges including illegal connections, security issues in service areas affected by terrorism, high domestic consumer base, staff shortages, and operational constraints. Nepra, however, rejected Pesco’s arguments, noting that the licensee failed to provide satisfactory responses to the Show Cause Notice. The Authority imposed a fine of Rs 25 million on PESCO for failing to improve T&D losses and recovery in FY 2023-24 compared to FY 2022-23. Copyright Business Recorder, 2026