Published On: Tue, Mar 21st, 2023
Published in Category: Islamabad

PM directs to transfer 10 electricity distribution companies to provinces

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Islamabad: The Prime Minister issued instructions to transfer 10 electricity distribution companies to the provinces on Monday. A 13-member committee constituted headed by the Defense Minister to prepare a draft agreement in 10 days. Prime Minister said that the federal government cannot bear the annual loss of 300 billion rupees of electricity distribution companies.

It was decided to transfer ownership of five distribution companies including LESCO to Punjab.

Also decided to move HESCO and SEPCO to Sindh, KESCO to Balochistan, PESCO and TESCO to Khyber Pakhtunkhwa.

The committee will also work out the details of distribution license amendment and other regulatory conditions from NEPRA. Provincial governments will have the authority to grant electricity subsidy or not. With these decisions, the responsibility of the federal government regarding subsidy will end. The federal government will retain control over power generation and transmission companies. Preventing electricity theft and load shedding schedule will also be the responsibility of the provincial government.