KARACHI: Government is providing highest subsidy to K-Electric as compared to state-run Power Distribution Companies (Discos), it emerged.

According to Ministry of Energy (Power Division) statistics, net required subsidy of K-Electric is Rs 169 billion and is being fulfilled by government budget.

Among Discos, three are Islamabad Electric Supply Company (Iesco), Lahore Electric Supply Company (Lesco) and Faisalabad Electric Supply Company (Fesco), which are subsidising remaining seven Discos with total amount of Rs 156 billion per annum, Secretary of Power Division Rashid Mahmood Langrial said.

Moreover, Peshawar Electric Supply Company generates only Rs 42 billion in cross-subsidies against subsidy requirement of Rs 77 billion, resulting in net required subsidy of Rs 35 billion.

Tribal Electric Supply Company requires Rs 19 billion subsidy, which is met by Rs 10 billion from inter-Discos subsidies and Rs 9 billion from government.

Multan Electric Power Company also demonstrates reliance on subsidies, needing Rs 86 billion in total, with Rs 43 billion coming from inter-Discos subsidies and Rs 43 billion from government while Quetta Electric Supply Company has subsidy requirement of Rs 44 billion with Rs 22 billion each provided by inter-Discos subsidies and government.

Sukkur Electric Supply Company requires Rs 25 billion in subsidies with Rs 12 billion sourced from inter-Discos subsidy and Rs 13 billion from government.

Meanwhile, Hyderabad Electric Supply Company has subsidy requirement of Rs 69 billion with federal government contributing Rs 35 billion and remaining Rs 34 billion coming from inter-Discos cross-subsidy.

“If KE gets 276 mmcfd gas as approved by ECC there wouldn’t be need for any subsidy. Instead of captive or low-efficiency plants, gas should be given to K-Electric.” Natural gas supply to KE is currently suspended, it added.

Published in The Daily National Courier, October, 27 2023

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