Pakistan Electric Power Company (Pepco) has been dissolved on Wednesday. However, formal notification to this effect will be issued on Thursday or Friday (tomorrow), official sources told Business Recorder.
"Pepco's Board of Directors headed by Secretary Water and Power has approved its dissolution and necessary notification to be issued today or tomorrow that it stands dissolved," the sources added.
The sources said, Ministry of Water and Power has won the case filed against dissolution of Pepco, which paved the way to implement the long awaited decision.
Secretary Water and Power, Imtiaz Kazi said on Wednesday that the government has finalised almost all work and just waiting for court decision.
The government is also planning to handover power Distribution Companies (Discos) to the provincial governments, for which modalities are being finalised with the stakeholders.
Dissolution of Pepco is part of power sector reforms initiated by the government of Pakistan (GoP) in consultation with the World Bank and the Asian Development Bank.
Pepco will be replaced by 'Central Power Purchase Agency' (CPPA). The majority of members of CPPA Board will be from the private sector.
Two representatives will be taken from government, two from private sector, two from distribution companies and two from consumers. Pepco's employees will be transferred to companies and their issues relating to seniority will be resolved by the concerned Boards.
Workers have already planned to stage protest demonstrations, but the government is using its contacts with the union to defuse the situation. Though the government had established Discos many years ago they were not given administrative and financial independence. Companies were relying on instructions from Pepco.
Planning and Development Division, led by Dr Nadeem-ul-Haq has been assigned the responsibility of looking into all the issues of power sector reforms including dissolution of Pepco. A team of American power sector experts funded by the USAID is also supervising power sector reforms besides the World Bank, which extended millions of dollars for this purpose.