The handing over of power distribution companies (Discos) as proposed by Shahbaz Shahrif will benefit only Punjab as Discos in Sindh, Balochistan and Khyber-Pakhtunkhwa (KP) are incurring losses of about 28-30 percent. Recently, the Punjab chief minister proposed that control of all Discos established in Punjab should be given to the province.
"If Discos are handed over to the provinces, as proposed by Mian Shahbaz Sharif consumers of Punjab will pay lower bills by comparison with other provinces," said an expert. Power sector analysts argued that Punjab-based Discos - Lahore Electric Supply Company (Lesco), Gujranwala Electric Power Company (Gepco), Faisalabad Electric Supply Company and Islamabad Electric Supply Company (Iesco) - are the most efficient entities with respect to transmission and distribution (T&D) losses.
Multan Electric Power Company (Mepco), which is in the constituency of Prime Minister Syed Yousuf Raza Gilani, is the highest loss-making entity in the province. Hyderabad Electric Supply Company (Hesco), the recently-created Sukkur Electric Supply Company, Quetta Electric Supply Company (Qesco) and Peshawar Electric Supply Company (Pesco) are among top loss-making entities.
Minister for Water and Power Syed Naveed Qamar acknowledged that the performance of Punjab-based Discos was far better than Discos in other provinces. The federal government had allocated Rs 238 billion last year to Wapda and Pepco as subsidy to poorly-performing discos with the objective of eliminating inter-disco tariff differential while KESC was also given Rs 46 billion.