FESCO, LESCO, and IESCO jointly contribute Rs156 billion towards the government’s subsidy policy, while the remaining XWDISCOS consume a total of Rs314 billion in subsidies. PHOTO: fileIn a shocking revelation, it has been disclosed that inefficient captive power plants (CPPs) in Pakistan have been absorbing a significant portion of subsidies, contributing to the growing subsidy burden in the power sector. He explained that customers of Faisalabad Electric Supply Company (FESCO), Lahore Electric Supply Company (LESCO), and Islamabad Electric Supply Company (IESCO) are effectively subsidising the entire power sector within the service areas of these distribution companies (XWDISCOS). FESCO, LESCO, and IESCO jointly contribute Rs156 billion towards the government’s subsidy policy, while the remaining XWDISCOS, including Quetta Electric Supply Company (QESCO), Sukkur Electric Power Company (SEPCO), Hyderabad Electric Supply Company (HESCO), Multan Electric Power Company (MEPCO), Gujranwala Electric Power Company (GEPCO), Peshawar Electric Power Company (PESCO), and Tribal Electric Supply Company (TESCO), consume a total of Rs314 billion in subsidies. Supplying RLNG to KE has enabled the government to divert cheaper indigenous gas to inefficient captive and export-oriented private units.

Source: The Express Tribune October 26, 2023 10:14 UTC