OPERATIONAL EFFICIENCY AND FINANCIAL SUSTAINABILITY OF PESHAWAR ELECTRICITY SUPPLY COMPANY

Abstract

The aim of this study is to analyze the operational and financial performance of the Peshawar Electricity Supply Company (PESCO) using yearly from 2004 to 2025. PESCO is one of the major electricity distribution companies (DISCOs) in Pakistan, responsible for supplying power to Khyber Pakhtunkhwa province. This research examines trends in consumer growth, electricity losses, billing, collection efficiency, and infrastructure enhancement. Time series data and econometric techniques like unit root tests, cointegration analysis, and Autoregressive Distributed Lag (ARDL) models have been used for analysis, the study examines the determinants of system losses and collection efficiency of the organization. The results disclose that PESCO has an average loss percentage of 35.6% and an average collection efficiency of 86.5%. The analysis indicates that consumer growth reduces losses in the long run, while low-tension (LT) line expansion increases line losses. Collection efficiency is positively affected by consumer growth but decreases by losses and LT line expansion. The study concludes that PESCO faces insistent operational and financial challenges that need targeted policies, including high-tension (HT) line investment and enlargement, careful management of LT line expansion with better anti-theft measures, and stronger administration and collection policy implementation.