The Ministry of Energy (Power Division) has accelerated the privatisation process of Lahore Electric Supply Company (LESCO), while the company has sent the balance sheet and details of assets to the power division, Pakistan Today learnt.
According to the details, due to continuous financial deficit, line losses and non-payment of bills, the present government had decided to privatise the DISCOs including LESCO. However, in June this year, LESCO implemented the privatisation process and decided to hand over the distribution of electricity bills to the private sector.
An official of LESCO on condition of anonymity informed this scribe that the outsourcing of distribution of bills was approved by PEPCO and it was decided to hand over the distribution of bills of the company’s South Circle to the private sector.
The official added that there was a plan to outsource the bill distribution as a pilot project in all the divisions of South Circle. However, under this plan, the distribution of bills in DHA, DHA East, Kot Lakhpat and Gulberg divisions was to be done by the private sector.
The official further informed that LESCO had received a letter from Pakistan Electric Power Company (PEPCO) in July (the letter was sent to all-electric supply companies) asking them to provide all the records regarding balance sheets and liabilities and a timeline of one month was given for this task.
However, the official added that the balance sheet has been sent to the power division by LESCO which contains not only the details of the company’s accounts but also the details of the assets.
“The company has also sent the details of arrears of WAPDA, NTDC, PEPCO and all these departments owed RS 14 billion to LESCO. Similarly, details of subsidies received by the company and cases pending in the courts have also been sent to the Power Division. Details of bills due for running and dead defaulters have also been sent,” he added.
The official believed that the purpose of sending all these details was to get all the details to the Privatization Commission and enable the Commission to take a final decision.
The official revealed that the privatization process at the administrative level was expedited after the formal appointment of Chaudhry Muhammad Amin, Chief Executive Officer of LESCO and in this regard, it was also decided to appoint officers from the private sector to the important seats of the company.
The official said that the interviews of the candidates for the post of Director Marketing and Tariff from the private sector were also underway and candidates will be interviewed by the Selection Committee and the successful candidate will be appointed as Director Marketing and Tariff.