PD says no fresh CCI approval needed for DISCO privatisation
- Response comes amid scrutiny of the federal government’s authority to privatise power utilities
Privatisation Division (PD) has maintained that fresh approval from the Council of Common Interests (CCI) is not required to privatise power distribution companies (DISCOs), citing earlier decisions of the constitutional body and the National Electricity Policy.
In a response submitted to a Sub Committee of the Senate’s Functional Committee on Devolution, the division said the CCI had approved the privatisation of three power generation companies and nine distribution companies in 2011.
“CCI also granted approval dated 21 June 2021 of the National Electricity Policy (para 5.9.4) which provides that the government shall explore various options of privatisation to improve the efficiency of state-owned entities, where applicable; both decisions remain in the field.
“On the validity of these decisions, the Law Division, in its letter of 25 September 2026, re-confirmed that in light of the 2011 CCI decision, fresh approval is not required for the privatisation of DISCOs.
“Accordingly, the Privatisation Division reiterates that, in light of the 2011 CCI decision and the 2021 NE Policy, fresh CCI approval is not required,” read the response.
The position comes amid scrutiny of the federal government’s authority to privatise power utilities and the role of the CCI.
Comments