Discos to get full autonomy: Pepco to be dissolved tomorrow

The Pakistan Electric Power Company (Pepco) will be dissolved on Monday after which the distribution companies (discos) will get complete financial and administrative autonomy, official sources told Business Recorder. Dissolution of Pepco is part of power sector reforms initiated by the Government of Pakistan (GoP) in consultation with the World Bank and the Asian Development Bank.
The Minister for Water and Power, Naveed Qamar, who presided over a meeting of the Chairmen of the Boards of Directors (BoDs) of discos, discussed post-Pepco issues and appointment of new Chief Executive Officers (CEO) of discos. Sources said that the Minister directed the chairmen of the BoDs to interview a panel of three candidates for each disco.
Pepco will be replaced by ''Central Power Purchase Agency'' (CPPA). The majority of members of CPPA Board will be from the private sector. Two representatives will be taken from government side, two from private sector, two from distribution companies and two from consumers. Sources said that employees will be transferred to companies and their issues relating to seniority will be resolved by the concerned Boards.
Workers have already planned to stage protest demonstrations, but the government is using its contacts with the union to defuse the situation. Though the government had established the discos many years ago but they were not given administrative and financial independence. Companies were relying on instructions from Pepco. According to the Minister, it will be the responsibility of the Chairmen and members of the boards of directors to develop a corporate and friendly culture in the companies so that consumer complaints are addressed without any delay.
Qamar said basic purpose behind reforms in the power sector is to make the sector more viable, sustainable and efficient. He said that some of the reforms have already been introduced and the remaining will be announced shortly. The government has also constituted a ''holding company'' with representation of reputable persons from the private sector on its Board to accelerate the process of giving four Gencos to the private sector.
The company will enjoy complete financial and administrative autonomy in taking decisions. Planning and Development Division, led by Dr Nadeem ul-Haq has been assigned the responsibility of looking into all the issues of power sector reforms including dissolution of Pepco. A team of American power sector experts funded by the USAID is also overseeing power sector reforms besides the World Bank.