Today News

Discos’ failure: Rs 480 billion could not be recovered from electricity bill defaulters

Islamabad: Government claims in electricity bill recoveries have once again fallen on deaf ears. According to the annual report of the Auditor General of Pakistan, electricity distribution companies (DSCOs) across the country failed to recover Rs480 billion from defaulters during 2024-25.

The report says that the biggest challenge for the DSCOs is still the recovery of bills from defaulters. Currently, there are 476,488 consumers who have not paid their dues and the companies seem completely unsuccessful in recovering them.

According to the data, the arrears have increased by Rs828 billion in the last six years. In 2021-22, the arrears were Rs1,189 billion, which increased to Rs2,017 billion in 2024.

The report further states that in just one financial year (2021-22), the arrears increased by Rs341 billion.  Similarly, an increase of Rs 197 billion in arrears was recorded in 2022-23 and Rs 290 billion in 2023-24.

Energy experts say that if this recovery crisis continues, the circular debt may increase further and an increase in electricity prices will become inevitable, which will have a direct impact on consumers and the country’s economy.

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