🔲 Public Inquiry Series | Episode 16
Topic: How Can Pakistan’s Electricity System Be Fixed?
(How Can Line Losses in Our Power System Be Controlled?)
🔺 When institutions withhold facts, the responsibility to uncover the truth rests with the public.
Research & Writing: Syed Shayan
🔳 Pakistan’s Largest Dam, Tarbela, Has a Power Generation Capacity of 4,888 MW, Producing Around 16 to 18 Billion Units Annually. Yet, According to NEPRA, Pakistan Loses 18 to 22 Billion Units Every Year Under “Line Losses.”
▫
Globally, out of every 100 units of electricity generated, about 93 to 94 units successfully reach the consumer, with only 6 to 7 units lost. In Pakistan, however, these losses have risen to nearly 18 percent, and in some regions, as high as 37 to 39 percent.
Dear readers, so far we have examined one side of the IPP system where payments are made even without electricity being produced. However, an equally troubling reality exists where consumers are being charged even without receiving electricity, and this is done under the label of “line losses.”
Line losses refer to the electricity that is lost before it reaches the consumer after leaving the power plants. In NEPRA terminology, these are called Transmission and Distribution losses, or simply T and D losses.
These losses occur at two levels.
The first arises from technical weaknesses in the system, such as outdated wiring, weak transmission infrastructure, and long distance electricity flow.
The second results from administrative and social issues, including electricity theft, meter tampering, and poor bill recovery.
In this episode, however, I will focus only on the first category, technical losses caused by system inefficiencies, ageing transmission lines, and long distance distribution.
Globally, around 93 to 94 units out of every 100 generated reach the end consumer, with only 6 to 7 units lost. In Pakistan, this loss rises to nearly 18 percent, and in some areas, up to 37 to 39 percent. In simple terms, electricity is produced, but a significant portion is lost before it even reaches the consumer.
The primary reason for this is the outdated state of Pakistan’s transmission and distribution system.
This comparison exposes a harsh reality that must be understood from both technical and administrative perspectives. It represents a “black hole” in the system that is continuously feeding Pakistan’s circular debt crisis.
Over the past decade, data indicates that Pakistan has been losing between 18 to 22 billion units annually under line losses. The financial impact of this loss is estimated at PKR 500 to 650 billion each year. The scale of this loss is so severe that it exceeds the total annual electricity generation of the Tarbela Dam itself, which produces around 16 to 18 billion units.
In effect, every year Pakistan is losing more electricity than what a project as massive as Tarbela produces, simply due to inefficiency and systemic failure. The question is, how many of us truly recognise this loss? What is the value of generating electricity at Tarbela if an even greater amount is wasted before it reaches the people?
This reality can be further understood through another example. The Lahore Electric Supply Company, which serves Lahore, Kasur, Sheikhupura, Nankana Sahib, and Okara, records an average annual electricity sale of around 21 billion units across these districts.
When compared to the country’s annual line losses, which range between 18 to 22 billion units, a disturbing fact emerges. Each year, Pakistan is losing electricity equivalent to the total annual consumption of an entire region like LESCO. In other words, the electricity required to power homes, industries, markets, public spaces, and agricultural tube wells across multiple districts for a full year is being lost due to transmission inefficiencies and systemic mismanagement.
In Pakistan, “line losses” are no longer just a technical term. They have evolved into a systemic cover that effectively shields inefficiency, negligence, and corruption within institutions.
When regulatory authorities and distribution companies incorporate losses of 15 to 18 percent into the tariff structure for their own convenience, they are in effect admitting that fixing the system is beyond their capacity. What we are witnessing is fundamentally an engineering crisis. Low voltage issues, overloaded and ageing transformers, and weak transmission infrastructure result in a significant portion of electricity being lost as heat before it reaches consumers.
At the same time, the concept of line losses is often used to mask electricity theft and administrative inefficiencies. Under the cover of “acceptable losses,” manipulation and irregularities can easily be absorbed into the system, as a predefined loss margin already exists.
The most damaging consequence of this approach is the complete erosion of accountability. No one is held responsible, and no one is punished. Ultimately, the financial burden of this systemic failure is passed on to the public in the form of inflated electricity bills.
In reality, the electricity system should function like a commercial product. Just as every rupee in a banking system can be traced, every unit of electricity leaving the grid should have a digital trail. Unless energy accounting is implemented at the feeder level, and responsibility for losses is directly linked to the performance records of field officers, this crisis will persist.
The principle must be simple: the electricity supplied must match the electricity billed and recovered. Until this standard is enforced, inefficiency and exploitation will continue, and the burden will remain on honest, tax paying citizens.
Another emerging dimension of technical losses in Pakistan is related to power quality and harmonic distortion. The increasing use of solar inverters, inverter based air conditioners, and other non linear loads is introducing harmonics into the grid, leading to additional heating and energy loss.
Furthermore, the traditional distribution system is not fully equipped to handle reverse flow under net metering, resulting in voltage imbalances in certain areas. This represents a growing technical challenge, although the preparedness and response of the power sector in this regard remain unclear.
This discussion would be incomplete without mentioning Nikola Tesla, who laid the foundation of modern electricity transmission and distribution systems. His concept of alternating current forms the backbone of today’s global power grids. Tesla once stated that transmission efficiency could reach up to 96 to 97 percent, with negligible losses. He also envisioned a system where electricity could be distributed over vast distances with minimal loss.
Yet today, Pakistan’s transmission and distribution losses stand at an average of 18 to 22 percent, and in some distribution companies, such as PESCO, QESCO, and SEPCO, losses have reached as high as 37 to 39 percent.
In contrast, modern projects in Europe, such as AmpaCity, have demonstrated near zero losses using superconducting technology. What was once considered impossible has now become reality elsewhere.
(To be continued in the next episode)
Dear readers, so far we have examined one side of the IPP system where payments are made even without electricity being produced. However, an equally troubling reality exists where consumers are being charged even without receiving electricity, and this is done under the label of “line losses.”
Line losses refer to the electricity that is lost before it reaches the consumer after leaving the power plants. In NEPRA terminology, these are called Transmission and Distribution losses, or simply T and D losses.
These losses occur at two levels.
The first arises from technical weaknesses in the system, such as outdated wiring, weak transmission infrastructure, and long distance electricity flow.
The second results from administrative and social issues, including electricity theft, meter tampering, and poor bill recovery.
In this episode, however, I will focus only on the first category, technical losses caused by system inefficiencies, ageing transmission lines, and long distance distribution.
Globally, around 93 to 94 units out of every 100 generated reach the end consumer, with only 6 to 7 units lost. In Pakistan, this loss rises to nearly 18 percent, and in some areas, up to 37 to 39 percent. In simple terms, electricity is produced, but a significant portion is lost before it even reaches the consumer.
The primary reason for this is the outdated state of Pakistan’s transmission and distribution system.
This comparison exposes a harsh reality that must be understood from both technical and administrative perspectives. It represents a “black hole” in the system that is continuously feeding Pakistan’s circular debt crisis.
Over the past decade, data indicates that Pakistan has been losing between 18 to 22 billion units annually under line losses. The financial impact of this loss is estimated at PKR 500 to 650 billion each year. The scale of this loss is so severe that it exceeds the total annual electricity generation of the Tarbela Dam itself, which produces around 16 to 18 billion units.
In effect, every year Pakistan is losing more electricity than what a project as massive as Tarbela produces, simply due to inefficiency and systemic failure. The question is, how many of us truly recognise this loss? What is the value of generating electricity at Tarbela if an even greater amount is wasted before it reaches the people?
This reality can be further understood through another example. The Lahore Electric Supply Company, which serves Lahore, Kasur, Sheikhupura, Nankana Sahib, and Okara, records an average annual electricity sale of around 21 billion units across these districts.
When compared to the country’s annual line losses, which range between 18 to 22 billion units, a disturbing fact emerges. Each year, Pakistan is losing electricity equivalent to the total annual consumption of an entire region like LESCO. In other words, the electricity required to power homes, industries, markets, public spaces, and agricultural tube wells across multiple districts for a full year is being lost due to transmission inefficiencies and systemic mismanagement.
In Pakistan, “line losses” are no longer just a technical term. They have evolved into a systemic cover that effectively shields inefficiency, negligence, and corruption within institutions.
When regulatory authorities and distribution companies incorporate losses of 15 to 18 percent into the tariff structure for their own convenience, they are in effect admitting that fixing the system is beyond their capacity. What we are witnessing is fundamentally an engineering crisis. Low voltage issues, overloaded and ageing transformers, and weak transmission infrastructure result in a significant portion of electricity being lost as heat before it reaches consumers.
At the same time, the concept of line losses is often used to mask electricity theft and administrative inefficiencies. Under the cover of “acceptable losses,” manipulation and irregularities can easily be absorbed into the system, as a predefined loss margin already exists.
The most damaging consequence of this approach is the complete erosion of accountability. No one is held responsible, and no one is punished. Ultimately, the financial burden of this systemic failure is passed on to the public in the form of inflated electricity bills.
In reality, the electricity system should function like a commercial product. Just as every rupee in a banking system can be traced, every unit of electricity leaving the grid should have a digital trail. Unless energy accounting is implemented at the feeder level, and responsibility for losses is directly linked to the performance records of field officers, this crisis will persist.
The principle must be simple: the electricity supplied must match the electricity billed and recovered. Until this standard is enforced, inefficiency and exploitation will continue, and the burden will remain on honest, tax paying citizens.
Another emerging dimension of technical losses in Pakistan is related to power quality and harmonic distortion. The increasing use of solar inverters, inverter based air conditioners, and other non linear loads is introducing harmonics into the grid, leading to additional heating and energy loss.
Furthermore, the traditional distribution system is not fully equipped to handle reverse flow under net metering, resulting in voltage imbalances in certain areas. This represents a growing technical challenge, although the preparedness and response of the power sector in this regard remain unclear.
This discussion would be incomplete without mentioning Nikola Tesla, who laid the foundation of modern electricity transmission and distribution systems. His concept of alternating current forms the backbone of today’s global power grids. Tesla once stated that transmission efficiency could reach up to 96 to 97 percent, with negligible losses. He also envisioned a system where electricity could be distributed over vast distances with minimal loss.
Yet today, Pakistan’s transmission and distribution losses stand at an average of 18 to 22 percent, and in some distribution companies, such as PESCO, QESCO, and SEPCO, losses have reached as high as 37 to 39 percent.
In contrast, modern projects in Europe, such as AmpaCity, have demonstrated near zero losses using superconducting technology. What was once considered impossible has now become reality elsewhere.
(To be continued in the next episode)
