PM directs ED to start bifurcation of Pesco by creating Hezco

ISLAMABAD - In a move towards the bifurcation of the existing EX-Wapda Discos and to establish new electricity distribution companies, Prime Minister Shahid Khaqan Abbasi has asked the Energy Division to start with the bifurcation of Pesco and create Hazara Electric Supply Company (Hezco), it is learnt reliably here Tuesday.

The prime minister has asked the Energy division to fast track the administrative reforms of the distribution of companies and starts the process with the companies having unmanageably large area or number of customers like Lesco, Gepco, Pesco and Qesco, official sources told The Nation.

A letter No 3948/M/SPM/2017 issued by the prime minister officer stated, “The prime minister has been pleased to observe that the number of customers and area under command of various distribution companies in the power sector has been on increase during the last few years. With a massive increase in generation and consequential allocation of power to the distribution companies, it would be important to fast track the administrative reforms of distribution companies in a holistic manner.”

“The prime minister feels that the bifurcation of Pesco is of particular importance in view of its unique nature in terms of operational efficiency in different regions under its control. He has, therefore, desired that Power Division shall take up the bifurcation of Pesco and creation of Hazara Electric Supply Company at an early date. Similar, exercise shall be fast tracked in other distribution companies also with a completely independent administrative structure in each newly created unit,” the letter further said.

In terms of areas, Quetta Electric Supply Company (Qesco) and Peshawar Electric Supply Company (Pesco) are the largest discos. Pesco, located in Peshawar, provides service of power distribution to over 2.6 million consumers of all civil districts of Khyber Pukhtunkhwa. Pesco is divided into six circles covering about 1,204,621 hectares of land in total. Pesco covered area has been distributed in Bannu circle covers about 211,118 hectares of land, Hazara circle covers about 147,096 hectares of land, Khyber circle covers about 117,931 hectares of land, Mardan circle covers about 162,541 hectares of land, Peshawar circle covers about 117,931 hectares of land and Swat circle covers about 538,000 hectares of land.

Official source said that Hazara Circle is being considered good area when it comes to bill payment and line losses. The separation of Hazara from Pesco will have a negative impact on the performance of the later. Bannu Circle is the largest loss-making area which is being balanced by Hazara Circle and its separation will automatically increase the losses of Pesco, the source maintained.

Next company on bifurcation list could be Qesco which is providing power supply in the whole Balochistan excluding District Lasbela. It is smallest in terms of consumers but largest as it covers 43 percent area of Pakistan. Similarly, Gujranwala Electric Power Company (Gepco), is also on the list of bifurcation, covers 17206 Sq Km of area with 3.191 million consumers and it covers Gujranwala, Hafizabad, Sialkot, Gujrat, Narowal, and Mandi Bahauddin districts of Punjab.

Lahore Electric Supply Company (Lesco) area of responsibility covers Civil Districts of Lahore, Kasur, Okara and Sheikhupura and it comprises of the seven distribution operation circles, one construction and one GSO circle.

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