ISLAMABAD: The power division has formulated a proposal to resuscitate disbanded Pakistan Electric Power Company (PEPCO), which targets to controlling uncurbed power distribution companies and enact prompt decision making.
This was revealed by well-informed sources according to a report of Business Recorder.
The Cabinet Committee on Energy (CCoE) meeting is expected to be conducted next week to be presided by Prime Minister Shahid Khaqan Abbasi would take up this recommendation and permit the power division to table its summary in the federal cabinet.
PEPCO was closed due to power sector reforms, which was supposed to permit power distribution companies to operate independently.
But the initiated reform drive hasn’t paid off and the Power Ministry still exercises a significant influence about decision making of distribution companies besides being involved in posting and transfers.
PEPCO got disbanded in October 2010 on the directives of ex-Prime Minister and then Minister for Water and Power, Raja Pervez Ashraf.
An official said Pepco was disbanded due to circular debt having then crossed Rs400 billion, which has now touched Rs1 trillion.
This figure of Rs1 trillion includes Rs500 billion energy sector parked in books of PHPL and Rs541 billion circular debt.
But, power division has expressed willingness to accept PHPL loan as circular debt according to proscribed definition approved by Economic Coordination Committee last year.
However, power sector analyst believe resuscitating Pepco would reverse the power sector reforms and violate agreements reached by Islamabad with International Monetary Fund, World Bank, Asian Development Bank.
As per another senior official, Pepco’s revival is being undertaken to establish it as a monitoring unit meant to oversee affairs of power sector after receiving go-ahead from CCoE.
