ISLAMABAD: The Power Division is reportedly working on establishment of electricity exchange in the country on the pattern of India, well-informed sources told Business Recorder.
At a recent meeting, Prime Minister Shehbaz Sharif directed the Minister for Power Sardar Awais Khan Leghari who is also Chairman Task Force on power sector reforms, to prepare electricity exchange plan and submit it to the Prime Minister for review and approval.
The Power Minister, sources said, has also been directed to present a way forward on the implementation of net metering.
Leghari shares salient features of power plan
The Power Division will make a separate presentation to the Prime Minister on DISCOs losses along with recovery plan, with action matrix based on technological intervention for the approval of the Prime Minister.
According to sources, Power Division is tasked to also share the progress on DISCO installation and identify the financial requirements to execute it.
Power Division has also been directed to prepare a plan to bill domestic consumers of TESCO in addition to an off-grid solution for the electricity provision in the TESCO jurisdiction.
Chairman, Task Force on power sector, will make a detailed presentation to the Prime Minister on losses and theft in five Discos in Khyber Pakhtunkhwa, Balochistan and Sindh, along with solutions to arrest losses and theft.
He will also finalize the wheeling regime and share the Competitive Trading Bilateral Contract Market (CTBCM) implementation plan with Prime Minister Shehbaz Sharif.
Power Division will finalize the work on tariff reduction and present it to the Prime Minister for approval.
Target to be segregated into tariff reduction component that can be implemented through internal measures only, and those requiring external consultation.
ln order to bring clarity in the procedure to be followed by concerned ministry and Privatization Division, a presentation encompassing all steps in the process of privatization may be made bringing clarity to various steps leading up to privatization for synchronization activities for timely completion of privatization. Guidelines to be issued subsequently to all relevant ministries.
The sources said, provincial governments are seen least interested in acquiring Discos which implies that the Prime Minister’s intention to make an effort towards provincialisation of Discos. In this regard, Secretary Power Division has written letters to all the provincial Chief Secretaries and sought their opinion.
The government of Sindh, in its response, did not show any enthusiasm in acquiring the two highly loss-making Discos i.e. HESCO and SEPCO.
Balochistan government, in its letter stated “keeping in view the future outlook of Discos and the deteriorated condition of QESCO, the Government of Balochistan says that it does not need the Disco and do not agree to the provincialisation of QESCO. The federal government may proceed with the privatisation process of QESCO”.
The Punjab Government, in its response has stated that earlier, in line with the decisions of the Cabinet Committee on Privatization (CCoP) of June 24, 2022, the Provincial Cabinet, Punjab approved the hiring of a Transaction Advisor for necessary financial and strategic guidance for making an informed decision on the proposal for the provincialisation of DISCOs.
In the meantime, the Federal Government decided to privatize the DISCOs of Punjab in a phased manner, instead of their provincialisation. Resultantly, the matter of hiring the Transaction Advisor in Punjab was halted.
The Punjab government further stated that it was conveyed on January 08, 2025 that based on the decision of CCoP, the privatization process of three DISCOs (IESCO, FESCO, and GEPCO) is currently at an advanced stage and they will be offered for privatization in the first phase.
It has further been added that another option could be the provincialisation of DISCOs through transferring of ownership or long-term concession to their respective provincial governments, following due diligence processes. CCoP has also approved a long-term concession model for three other DISCOs.
According to an official of Energy Department of Punjab, the process of acquisitions/divestitures of DISCOs would require the assistance of a Transaction Advisor to conduct due diligence, analyze financial data, identify potential risks, and assess the overall economic health of the Companies. Only thereafter will Punjab be in a position to render its comments on the Provincialisation of DISCOs in Punjab.
The response of Khyber Pakhtunkhwa has not been ascertained on the offer of federal government.
When contacted, Brig Tariq Saduzai (retired), Special Assistant to the Chief Minister of KPK, stated, “We are seriously considering the proposal for the provincialisation of Discos and have recently discussed the matter in detail under the supervision of the Chief Minister and other provincial stakeholders.
Although we have not responded officially, we have had brief discussions regarding the subject, seeking certain clarifications with the Minister for Power and the Secretary of Power.
As this is a complex issue, we will need time to conduct proper due diligence in consultation with experts before responding to the federal government.“ He further emphasized that the federal government should appoint Transaction and Financial Advisors for the Discos that provinces are willing to acquire.
Copyright Business Recorder, 2025
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