Prior to sell-off of 2 Punjab-based Discos: Body to explore bifurcation feasibility

ISLAMABAD: The Ministry of Privatisation (MoP) has constituted a Technical Committee to evaluate the possibility of bifurcating Lahore Electric Supply Company (LESCO) and Multan Electric Power Company (MEPCO) into two or three smaller distribution companies (DISCOs) prior to privatisation, as both entities have the largest service areas among DISCOs, well-informed sources told Business Recorder.

The Technical Committee comprises Sajid Akram, Advisor (Power), Privatisation Commission (Chairman); Ghulam Rasool, Joint Secretary (Privatisation), Power Division (Member); Imran Hafeez, Additional Director Tariff, NEPRA (Member); and Abid Lodhi, Managing Director, PPMC (Member).

Sources said the performance of both companies has remained comparatively weaker than other DISCOs in Punjab, particularly in terms of theft, losses and recovery.

MEPCO, a premier public unlisted company incorporated in 1998 under the Companies Ordinance 1984, is owned by the Government of Pakistan through the Ministry of Energy. It operates under a permanent distribution licence granted by the National Electric Power Regulatory Authority (NEPRA) and provides electricity services to 13 administrative districts of Southern Punjab.

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The company is governed by a Board of Directors supported by four sub-committees, while the Chief Executive Officer oversees strategic alignment in accordance with the State-Owned Enterprises (SOE) Act and other federal regulatory frameworks.

MEPCO is the largest power distribution company in Pakistan in terms of consumer base, serving approximately 8.76 million customers across an extensive geographical area. Its network comprises over 82,000 kilometres of distribution lines and more than 780 grid stations, covering regions bordering three provinces and multiple DISCOs.

The company aims to provide reliable, safe and affordable electricity while maintaining financial viability through improved recovery and reduced losses. It is currently focusing on grid modernisation through Advanced Metering Infrastructure (AMI) and digital billing systems to enhance transparency and customer service.

LESCO, on the other hand, began operations as a public limited company in July 1998 under the Companies Ordinance 1984 (now Companies Act 2017). Its operational structure is decentralised, with a Board of Directors providing policy oversight and the Chief Executive Officer managing overall operations.

For field operations, LESCO’s service area is divided into eight operation circles headed by Superintending Engineers (SEs) and 41 divisions managed by Executive Engineers (XENs).

LESCO supplies electricity to around 7.05 million consumers, including domestic, commercial, industrial, bulk supply, tube wells and general service categories, across Lahore and adjoining districts such as Kasur, Sheikhupura, Nankana Sahib and Okara.

In recent years, LESCO has been working on modernising its systems by introducing AMI (smart meters), with a target to convert its entire consumer base by 2029. However, the company faces challenges such as shortages of transformers and meters, which have delayed new connections and replacements, attracting regulatory scrutiny and consumer complaints.

Efforts to streamline new connections, improve complaint handling mechanisms and expand digital billing services are part of LESCO’s ongoing reforms to balance growing demand with infrastructure limitations.

According to audits for FY2024-25, the performance of both DISCOs remained unsatisfactory.

The Terms of Reference (ToRs) of the Technical Committee include: (i) evaluating the feasibility of bifurcation into smaller companies; (ii) analysing the strategic pros and cons of such restructuring in light of the National Electricity Plan, Power Policy and the ongoing privatisation programme; and (iii) reviewing whether any similar committee was previously constituted, along with its findings and recommendations.

Copyright Business Recorder, 2026