ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has formally granted a 20-year electric power supply licence to Hazara Electric Supply Company Limited (HAZECO), authorising it to operate as a Supplier of Last Resort (SoLR) in eight districts of Khyber Pakhtunkhwa (KP).
The licence, effective immediately, will remain valid until May 2045. Issued under Sections 23E and 23F of the NEPRA Act, it authorizes HAZECO to supply electricity in Abbottabad, Haripur, Mansehra, Battagram, Torghar, Upper and Lower Kohistan, and Kolai Pallas—areas formerly served by Peshawar Electric Supply Company (PESCO).
This move follows the federal government’s directive to divide PESCO’s jurisdiction and create HAZECO as a separate public limited company to improve power service efficiency in the region.
The Ministry of Energy (Power Division) endorsed HAZECO’s application, submitted on October 21, 2024, which went through stakeholder consultations and a review process.
NEPRA noted that HAZECO, incorporated on October 31, 2023, has inherited the necessary infrastructure and resources from PESCO. With over 210 high-tension feeders, HAZECO is set to serve approximately 800,000 consumers across various categories. In FY 2023–24, the region saw a peak demand of 712 MW and recorded 2,346 GWh in energy sales.
The power regulator also directed HAZECO to file a tariff petition under NEPRA Tariff Rules, while adhering to strict performance and consumer service standards. The company is required to function with full transparency, adopt smart metering practices, and ensure efficient billing, complaint resolution, and meter accuracy.
Importantly, HAZECO will be obligated to participate in the Competitive Trading Bilateral Contract Market (CTBCM) and maintain a dedicated regulatory and planning unit (MIRAD) to support market integration.
NEPRA emphasized that any financial burden, service delays, or regulatory non-compliance would lead to enforcement action, including possible revocation of the licence. HAZECO is also required to ensure functional separation of its distribution and supply operations within two years.
