The National Electric Power Regulatory Authority (Nepra) has imposed a Rs 25 million fine on the Lahore Electric Supply Company (LESCO) for failing to meet key performance targets during the fiscal year 2023–24.
According to an official statement, Nepra took the decision after reviewing LESCO’s rising transmission and distribution losses and poor bill recovery results. The regulator noted that LESCO’s system losses rose by 4.04 percent, reaching 15.92 percent, which led to an estimated Rs 47.6 billion loss to the national exchequer.
In its order, Nepra directed LESCO to pay the fine within 15 days, citing serious inefficiencies and non-compliance with approved standards. The authority said that despite repeated instructions, the company failed to reduce losses or improve its recovery rate.
Nepra added that a show-cause notice had earlier been issued to LESCO, but the company could not provide satisfactory explanations or supporting evidence to justify its weak performance. The regulator emphasized that such inefficiencies add a heavy burden to Pakistan’s power sector and directly impact national energy stability.
The authority observed that LESCO’s continued underperformance showed poor management and a lack of accountability within the distribution network. Nepra reiterated that maintaining efficiency and transparency in operations is crucial for ensuring a sustainable energy system.
In a separate case, Nepra also fined K-Electric (KE) Rs 25 million for operational lapses during the nationwide power breakdown in January 2023. After conducting a detailed investigation, the regulator found KE responsible for internal shortcomings that contributed to the system failure.
The inquiry revealed serious flaws in KE’s Black Start system, which is designed to independently restore power during outages. Despite earlier testing, the system failed to operate properly during the emergency. Nepra rejected KE’s explanations as unsatisfactory and ordered the company to pay the fine within 15 days.
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Nepra reaffirmed that operational negligence and inefficiency will not be tolerated, stressing that all power companies must adhere to performance standards to protect the national grid and consumers.
