ISLAMABAD: The federal government is providing the highest subsidy to K-Electric as compared to the state-run Power Distribution Companies (Discos), it emerged Wednesday.
According to the Ministry of Energy (Power Division) statistics, the net required subsidy of K-Electric is Rs169 billion and is being fulfilled by the federal government budget.
Among the Discos, three are Islamabad Electric Supply Company (Iesco), Lahore Electric Supply Company (Lesco) and Faisalabad Electric Supply Company (Fesco), which are subsidising the remaining seven Discos with a total amount of Rs156 billion per annum, Federal Secretary of Power Division Rashid Mahmood Langrial told The News.
The share of Iesco is Rs68 billion, Lesco Rs83 billion and Fesco Rs5 billion as cross-subsidising the other companies (except K-Electric).
The three do not need to take subsidies from the federal government.
Besides, the federal government is also subsidising the consumers of other Discos with a combined subsidy amount of Rs158 billion, a bigger amount than what it subsidises the K-electric with Rs169 billion.
Iesco, for instance, stands out as a self-sufficient entity, generating a cross-subsidy of Rs112 billion, which comfortably covers its Rs44 billion subsidy requirement. Lesco follows suit, generating Rs201 billion as it needs Rs118 billion for subsidies, leaving them financially robust. –Agencies
