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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?
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?