Electricity distribution companies (DISCOs) have reported a significant reduction in losses for the first quarter of the fiscal year 2024-25, with a total loss of Rs. 239 billion. This marks a decrease of Rs. 69 billion compared to the Rs. 308 billion loss recorded during the same period last year, according to data released by the Power Division.

The improvement is largely attributed to increased collection rates, which rose to 91 percent in the first quarter, up from 84 percent in the previous fiscal year. Despite this progress, DISCOs faced a total loss of Rs. 591 billion in the fiscal year 2023-24, primarily due to line losses and challenges in recovering dues.

In terms of circular debt, the first four months of FY24 saw a modest increase of Rs. 11 billion, a significant improvement compared to the Rs. 301 billion increase during the same period last year. The Power Division emphasized these figures as indicative of better management of circular debt compared to previous years.

While the results through September 2024 reflect a positive trend, the power sector still faces challenges and must continue to work towards achieving net positive growth in the coming years.