Addressing a press conference, the minister said that the decision was made in view of the Prime Minister’s directive for restructuring of public sector organizations to improve their performance.
He said a notification to dissolve PEPCO has been issued and a team has been formed oversee the transition process. He said all eight power distribution companies would now function as independent entities and would be responsible for distribution of power.
He said the PEPCO had been facing huge losses and its circular debt was Rs 400 billion. “Now we have to overcome this loss. Each power distribution company will have its own board of directors,” Pervez Ashraf said.
He said a steering committee will be formed for power distribution companies. He added power distribution companies will be responsible for supply of electricity and the steering committee will examine the situation atleast once in a month.
He said there will be a comprehensive audit of power generation companies from neutral local and international experts and a ministerial committee will supervise this process.
He said that the workers of PEPCO would not be affected with the restructuring process and the government would defend their rights.
The minister said that the provinces would be contacted to make legislation for control of line losses and electricity theft.
Deputy Chairman of Planning Commission Dr Nadeem-ul-Haq said that the disbanding was a part of larger plan of resolving problems plaguing the energy sector and hoped that better results would come after implementation of this decision.