By M Qadeer
LAHORE – Gujranwala Electric Power Company (Gepco) has significantly improved its financial and operational performance during fiscal year 2025-26, reducing line losses, increasing recovery and achieving savings of Rs5.2 billion, according to Chairman Board of Directors Mujahid Pervez Chatha.
Speaking to the media in Lahore, Chatha said Gepco had brought its line losses down to 9.80 per cent during the financial year, compared with 10.43pc recorded in the previous year.
He described the reduction as an important achievement for the power distribution company, saying losses had now been brought below the 10pc threshold and into single-digit territory.
Chatha said the improvement was achieved through a combination of better billing practices, action against electricity theft and defaulters, expansion and rehabilitation of the transmission and distribution network, and measures to improve the efficiency of overloaded feeders and transformers.
According to the Gepco chairman, the company achieved more than 100pc recovery during the year, while its contribution to the national circular debt remained zero.
He added that Gepco also made full and timely payments to the Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) during the financial year.
Rs5.2bn savings achieved
Chatha said the reduction in losses was accompanied by financial savings of around Rs5.2 billion during FY2025-26.
He attributed the savings to improved billing accuracy and timeliness, strict action against electricity theft, recovery efforts targeting defaulters and investment in the distribution network.
The company also undertook work on overloaded feeders and transformers, besides expanding its transmission infrastructure and establishing new grid stations.
According to the chairman, these measures not only helped reduce technical and commercial losses but also strengthened Gepco’s financial position.
He said continued attention to system efficiency was essential for ensuring reliable electricity supplies and reducing unnecessary financial pressures on the power sector.
Action against theft and defaulters
Chatha said Gepco had adopted a more effective approach towards billing and recovery during the year.
He maintained that accurate and timely issuance of electricity bills, coupled with action against power theft and consumers with outstanding payments, played a significant role in improving the company’s recovery performance.
The company also continued efforts to identify weaknesses in the distribution system and improve infrastructure in areas where feeders and transformers were operating under excessive load.
The Gepco chairman said these interventions were aimed at reducing avoidable losses while improving the reliability of electricity supply to consumers.
Better services for consumers
Alongside its financial and operational improvements, Gepco also focused on improving customer services.
Chatha said defective electricity meters were now being replaced within one month, representing an improvement in the company’s response to consumer complaints.
He said the company was working to ensure that operational improvements translated into better services for its consumers.
The emphasis on faster meter replacement is also expected to help improve billing accuracy and reduce disputes arising from faulty or inaccurate meter readings.
Zero contribution to circular debt
One of the key achievements highlighted by Chatha was Gepco’s zero contribution to the national circular debt during FY2025-26.
He said the company maintained a recovery rate above 100pc and fulfilled its payment obligations to CPPA-G in full and on time.
The development is significant for the power sector, where accumulated circular debt has remained a major financial challenge for successive governments.
Improved recoveries and lower distribution losses can help reduce the financial gap between electricity purchases and collections, thereby limiting pressure on the overall power-sector payment chain.
Federal minister praises performance
Federal Minister for Energy Sardar Awais Ahmad Khan Leghari welcomed Gepco’s performance, describing it as further evidence that continuous and data-driven monitoring of distribution companies can produce substantial financial and operational improvements.
According to the information shared by Gepco, the federal minister regularly reviews loss and recovery trends at the level of individual distribution companies.
The minister also directs management teams to maintain performance targets and stresses accountability of field formations for implementation on the ground.
The improved results at Gepco come amid wider government efforts to strengthen the performance of distribution companies, reduce electricity losses, improve recoveries and address structural weaknesses within the power sector.
Focus on sustained improvement
Gepco’s management has indicated that maintaining the gains achieved during the financial year will remain important.
The reduction in line losses from 10.43pc to 9.80pc represents a measurable improvement, while the Rs5.2bn savings and recovery rate exceeding 100pc point towards stronger financial management.
However, sustaining these gains will require continued action against electricity theft and defaulters, regular investment in the distribution network and timely maintenance of feeders and transformers.
The company’s performance will also remain closely linked to its ability to maintain accurate billing, improve customer services and ensure timely payments within the power-sector supply chain.
Chatha said Gepco would continue focusing on operational efficiency, financial discipline and improved service delivery to consumers.
The company operates across a large part of central Punjab and serves millions of electricity consumers, making reductions in losses and improvements in recovery important not only for its own financial position but also for the broader stability of the country’s power distribution system.
