Annual losses for power distribution companies (DISCOs) dropped to Rs325 billion this year, down from Rs591 billion in 2024. Last year, the annual losses of these distribution companies stood at Rs360 billion.
Circular debt decreased from Rs2.4 trillion to approximately Rs1.6 trillion over the last two and a half years. The government refinanced Rs1.2 trillion of that circular debt.
Budget support for the Power Division fell from Rs1,180 billion in 2024 to roughly Rs750 billion. A reduction in losses lowered the government's budget burden by about Rs200 billion.
A debt servicing surcharge of Rs3.23 per unit will be removed within four years. Consumers using up to 200 units currently pay about Rs13 per unit, despite an actual cost of Rs35.
These users receive a subsidy of roughly 60 to 65 per cent. The number of consumers using up to 200 units grew from 10 million to 22.5 million in two years.
Officials are developing a system to direct subsidies based on income levels.
