Three Major DISCOs Set for Privatization

ISLAMABAD: The Senate Standing Committee on Power was informed on Friday that the government’s phased power company privatization plan has begun, with three major electricity distribution companies (DISCOs) set for privatization in the first phase and several more to follow.

In a comprehensive meeting chaired by Senator Mohsin Aziz, the Senate Standing Committee on Power reviewed critical national electricity issues, including tariffs, rate reductions, and load shedding in Balochistan. A significant focus was on the government’s strategy for power company privatization and its implications for the workforce.

The Secretary of the Power Ministry revealed that in the initial phase, Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), and Gujranwala Electric Power Company (GEPCO) will undergo privatization. A second phase will include Lahore (LESCO), Multan (MEPCO), and Hyderabad (HESCO) DISCOs. The privatization of these power companies is part of broader reforms expected to conclude by January 2026.

The Committee raised serious concerns over the future of thousands of employees affected by power company privatization. The Ministry was directed to formulate comprehensive, employee-friendly policies, including voluntary early retirement packages, to mitigate job insecurity and protect workers’ rights.

Also in attendance were Senators Syed Shibli Faraz, Syed Kazim Ali Shah, Poonjo Bheel, Haji Hidayat Ullah Khan, Asad Qasim, the Minister for Power, and former Senator Ismail Buledi.

The Committee was also briefed on Rs161 billion in unpaid dues from provincial governments as of March 31, 2025. Sindh leads with Rs67 billion, followed by Punjab and Baluchistan with Rs42 billion each, and Khyber Pakhtunkhwa with Rs10 billion. Only Khyber Pakhtunkhwa has signed the reconciled statement. The Chairman criticized provincial inaction and demanded immediate recovery efforts.

800,000 AMI Meters Installed

Further updates included the installation of 800,000 AMI meters in Islamabad, Rawalpindi, and Taxila, resulting in a 2% reduction in line losses. The Ministry noted that AMI meters enable theft detection, load control, and remote monitoring, and are planned for nationwide rollout to all 30 million users.

NEPRA highlighted a Rs7.41 per unit reduction in electricity rates announced by the Prime Minister, which includes a Rs1.13 per unit fuel cost adjustment that varies monthly.

The Committee also debated the high electricity costs during peak hours due to reliance on Residual Fuel Oil (RFO) plants. The Chairman urged a shift to efficient alternatives to ease the burden on consumers.

Lastly, the Committee demanded urgent action from QESCO to address severe 18-hour load shedding in the Makran region, stressing the need for immediate relief.