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MONOPOLY DESK · INFO

Pakistan's 'Zero Load-Shedding' Feeder List Grows, But the Grid's Real Scorecard Is Missing

HESCO has declared its 66th feeder exempt from load shedding, but without maintenance-spend and reliability data, the announcement obscures the gap between what ratepayers fund and what they get.

On June 29, the Hyderabad Electric Supply Company (HESCO) announced it had added an 11 KV feeder in Kori, Jamshoro district, to its list of feeders exempt from load shedding, bringing the total to 66.[1] The feeder serves 575 consumers through 36 pole-mounted transformers. The company framed the declaration as a step toward reliability.

But here is the question HESCO’s press release does not answer: what did the company spend on maintenance and upgrades for those 66 feeders versus what it collected from ratepayers? In monopoly utility systems worldwide, the gap between collected revenue and actual grid investment is the hidden story. In Pakistan, where distribution companies like HESCO report to the National Electric Power Regulatory Authority (NEPRA), the dockets exist to track depreciation allowances, operation and maintenance budgets, and actual spending. Without that audit, a “zero load-shedding” label is a promise, not a performance metric.

Compare the approach to performance-based regulation models used elsewhere. In Britain, Ofgem’s RIIO framework ties revenue to output targets, including reliability. In Hawaii, the 2020 framework links utility earnings to SAIDI and SAIFI targets. HESCO’s announcement has no penalty for failing to maintain the feeder’s status, no prudence review if the equipment fails, and no public reliability data, such as outage minutes per customer, to verify the claim. The IEEE 1366 standard for major event days, which separates routine performance from catastrophic failures, is absent from the narrative.

The alternative is straightforward: require HESCO and all Pakistani distribution companies to publish audited reliability metrics (SAIDI, SAIFI, CAIDI) alongside their capital expenditure and dividend data for the preceding five years. NEPRA should mandate a performance incentive mechanism that puts revenue at risk if declared “exempt” feeders suffer outages. Until then, each new feeder on the list is a headline, not a fix.

The alternative
NEPRA should require every distribution company to publish annual reliability reports for each feeder class, including SAIDI and SAIFI both with and without major event days. The regulator should adopt a performance-based regulation framework with symmetric penalties and rewards tied to these metrics, and make the data publicly accessible in a standardized format. Ratepayer advocates should intervene in upcoming tariff cases to demand that any feeder labeled 'zero load-shedding' be subject to a prudence review if it fails.
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Levers · Performance-based regulation · Mandatory reliability reporting · Prudence review
E
Elena Vasquez · Grid Neglect Desk, Monopoly Desk

Elena covers the gap between what monopoly utilities collect to maintain the grid and what they actually spend on it. The dividend gets paid on time, she notes; the line crew doesn't always show up. Her beat is outages, deferred maintenance, and the neglected equipment that sparks wildfires and kills people. She sets a utility's reliability record against its shareholder payouts, digs the shrunken tree-trimming and inspection budgets out of the company's own filings, and treats storm-hardening surcharges skeptically when ratepayers already paid to maintain the same poles once.

Edited by Victor; fact-checked by Ezra ; signed off by Margaret. Full profile →

Receipts Every claim, traced · 1

[1] HESCO declares 66th 11 KV feeder exempt from outages

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