The federal government has decided to reactivate Pakistan Electric Power Company (PEPCO) in order to bring all the public sector power distribution companies (DISCOs) under a centralised control.
PEPCO has previously been under hibernation for around 10 years and its reactivation is a part of a process that may lead to the privatisation of the DISCOs.
According to reports published by local media outlets, PEPCO will have the role of a management agent of the DISCOs under a Management Agent Agreement. Under a proposal sent to DISCOs the government has suggested the appointment of PEPCO as a managing agent of DISCOs through a binding ten-year agreement, which will be extendable for another 10 years.
In its role, PEPCO will assist the Privatisation Commission and other departments involved in the government’s privatisation process and monitor the performance and management of the DISCOs. It will also be responsible to facilitate DISCOs in the formulation of corporate strategies, performance targets, planning parameters and evaluation measures.
PEPCO was established in 1998 as a part of a process to corporatise the Water and Power Development Authority (WAPDA) however it failed to deliver the desired results.
Until 2012, DISCOs came under the direct control of PEPCO, however during that time the performance of both PEPCO and DISCOs was found lagging due to political intrusions in the working of the company. Later, the then power minister Syed Naveed Qamar announced the abolishment of PEPCO, however, the power ministry failed to complete the entire shutdown process of the company.
