Business

Govt to re-assess privatization of power distribution companies (DISCOs)

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Staff Reporter

ISLAMABAD: The government has decided to reevaluate the privatization of power distribution companies (DISCOs) to enhance their performance and mitigate losses.

The Power Division has scheduled a meeting with all distribution companies to discuss the privatization process and review their readiness. CEOs of all DISCOs have been summoned to attend this meeting.

The government has already approved the privatization of nine DISCOs, with the first phase targeting FESCO, IESCO, and GEPCO.

An audit report from the Auditor General of Pakistan for 2023-24 revealed that power companies caused a loss of over Rs196 billion to the national treasury in just one year.

The report indicated that eight power companies exceeded the loss limits set by NEPRA, with losses ranging from 8.84% to 20.16%. PESCO incurred the highest loss of Rs133 billion, followed by SEPCO with Rs19.17 billion, LESKO with Rs14.95 billion, FESCO with Rs6.29 billion, MEPCO with Rs3.80 billion, and GEPCO with over Rs2.87 billion.

These excessive losses are attributed to outdated transmission lines and lengthy feeders, placing a significant financial burden on the national exchequer.

Staff Reporter

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