Pepco finally dissolved

[ameer219]

Pepco finally dissolved

RECORDER REPORT

ISLAMABAD (October 02 2010): The government on Friday dissolved the Pakistan Electric Power Company (Pepco) under power sector reforms programme agreed with international financial institutions (IFIs) in a bid to grant administrative and financial autonomy to the power distribution companies (discos). Addressing a press conference, Federal Minister for Water and Power Pervaiz Ashraf said that notification had been issued to dissolve Pepco.

He said that a steering committee had been formed to grant financial and administrative autonomy to complete the transition process of power distribution companies in nine months' time. "Distribution companies would now function as independent entities and would be responsible to operate on self-finance basis," he said, adding that it would also result in improving efficiency and reducing line losses and theft of electricity.

The Minister said that the gap between cost of generation and cost of services stood at Rs 20 billion per month, accounting for Rs 250 billion annual shortfall. He said that Pepco had been facing huge losses and problem of circular debt, amounting to Rs 400 billion.

Under the power sector reform plan, during first phase, four distribution companies, including Lahore Electric Supply Company (Lesco), Faisalabad Electric Supply Company (Fesco), Islamabad Electric Supply Company (Iesco) and Multan Electric Power Company (Mepco) would be made autonomous entities. "To meet the current need of power generation, we need to improve the fuel mix mechanism to generate more electricity with low cost as per the direction of Prime Minister Yousaf Raza Gillani," he said.

Answering questions, Ashraf said that electricity theft cases had been registered against over 23,000 people during last two years, and 461 people involved in these cases were arrested. He added that provincial governments would be consulted to introduce magistrate system to take action against persons involved in electricity theft cases. He said that the government would safeguard the interests of employees of Pepco.

Deputy Chairman of the Planning Commission, Dr Nadeem-ul-Haq, said that the government would strengthen the power sector by introducing reforms. He said that National Electric Power Regulatory (Nepra) amendment bill would be tabled soon to empower it for notifying power tariff like Oil and Gas Regulatory Authority (Ogra).

Copyright Business Recorder, 2010
Business Recorder [Pakistan's First Financial Daily]


Sparklingway, Zaki and TechLahore.

If you won't mind, can you 3 decide whether removing PEPCO is a good idea and why?

 

[AZADPAKISTAN2009]

Did not knew disco was popular again

 

[Hyde]

well doesn't matter if PEPCO is convoke or dissolved as the poor public want cheap electricity. The government once again raised power tarrif by 2% along with dissolving PEPCO. I don't think it is going to bring any changing for the common man's life so this is not really a shocking or breaking news for me.

We must try to cut the electricity theft cases to ensure efficient electricity.... we must try to improve the grids to prevent electricity losses.... we must try to rely less on rental power plants to generate cheaper electricity...and then all is OK

I don't think by dissolving PEPCO is it going to bring any changes for the brighter economy of the country

 

[sparklingway]

PEPCO was supposed to last only three years and it was envisaged that distribution companies would be made more autonomous and become the ultimate providers in their regions. It's 9 years too late, but the initial plan was good and it should be followed through.

With smaller distribution management, it'll be easier to maintain financial balance and soon we'll see which discos aren't performing well. Each disco will become responsible for its own payment to the generation companies and the best managed discos will be able to serve their customers better and since they'll be incharge of making sure customers pay, it'll be far better than a model where they have no big incentive to check electricity consumption since it was PEPCO that was supposed to pay the generation companies. Now, it'll be every distribution company for itself and financial responsibility has been enhanced. Except APTMA, all major trade, commerce and industrial bodies have supported the decision as well.

The white elephant called PEPCO had to die.

Meanwhile, somebody ought to ******* fix NEPRA as well. It's a mess out there.

 

[ajpirzada]

the whole problem lies with government setting the power tariffs. its producers' right to set the price for his product and CCP's right to make sure market remains competitive.
exactly similar to that of telecom industry.

we have our government setting the prices and then getting into circular debt trap...