The Pakistan Tehreek-e-Insaf (PTI) government is set to constitute an advisory board to regulate the distribution companies (DISCOs), primarily focusing on their bifurcation in order to minimize line losses and maximize recoveries.
According to sources, a former Managing Director (MD) of Pakistan Electric Power Company (PEPCO) has already been engaged to finalize details of the advisory board. It may be noted that the PTI leadership has also decided to set up a similar advisory board to facilitate industrial sectors; particularly those relating to the exports, and soon a formal announcement would be made to this effect.
The advisory council for the power sector will focus on breaking up power distribution companies into smaller units to reduce line losses and leakages. They said a blueprint is in the final stage and DISCOs are likely to be bifurcated further to control distribution networks. Sources said the distribution companies like Lahore Electric Supply Company (LESCO), Gujranwala Electric Supply Company (GEPCO) and Faisalabad Electric Supply Company (FESCO) are among those companies which are likely to be broken up in different units.
It is worth noting that the Senate Committee on power sector has recently discussed the state of affairs and has recommended initiation of the privatization of distribution companies in near future. Meanwhile, an independent audit is likely to be carried out to determine the exact generation capacity to assess the future energy requirements.
The power sector experts, however, have raised eyebrows over the much-likely bifurcation of distribution companies, saying that the vested interest elements have become active under a new regime to fulfill their designs.
They have pointed out that the vested interest elements are least bothered about the financial viability of the bifurcation process of DISCOs. They have mentioned the bifurcation of Hyderabad Electric Supply Company (HESCO) and creation of Sukkur Electric Power Company (SEPCO), saying that the SEPCO has been a failure since day one, as all the loss making regions were assembled under this new arrangement.
They said the government is paying huge subsidy for the consumers of various slabs in this region while the consumers of profit making distribution companies are being charged with tariff rationalization.
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