The federal government on Thursday formally initiated the privatising process of power distribution companies also known as Discos, ARY News reported.
Proposals have also been sought for appointing financial advisors for the privatisation of three distribution companies in the first phase.
The Faisalabad Electric Supply Corporation (FESCO), Islamabad Electric Supply Company (IESCO), and Gujranwala Electric Power Company (GEPCO) will be privatised in the first phase.
The Privatisation Commission invited requests for proposals from interested parties, with a deadline of September 16, 2024. Advertisements seeking applications have also been published in international newspapers.
Applicants will also be required to pay a processing fee of $1,000.
On August 2, the federal government okayed the privatisation of 13 power distribution companies as the Ministry of Energy unveiled a plan to privatise these entities in phases.
According to the notification, the Ministry of Energy has also issued directives for the privatisation of 12 organizations in the power sector.
The privatisation process will be carried out in phases, with the first phase involving the privatization of four Discos. The four power companies include FESCO, GEPCO, HESCO, and IESCO.
The second phase will include the privatisation of MEPCO, PESCO, and other companies, as per the notification
The privatisation process is expected to be completed in phases, with the government aiming to attract private investment in the power sector.
Earlier, it was reported that eight power companies incurred losses exceeding the stipulated limit, resulting in a massive loss of national kitty.
The report highlighted that the power companies’ losses exceeded the limit set by NEPRA, ranging from 8.84% to 20.16%. PESCO topped the list, causing a loss of Rs133 billion, followed by SEPCO (Rs19 billion and 17 crore), LESKO (Rs14 billion and 954 crore), FESCO (Rs6 billion and 29 crore), MEPCO (Rs3 billion and 80 crore), and GEPCO (over Rs2 billion and 87 crore).
The report attributes the excessive losses to old transmission lines and long feeders. The power companies’ inability to meet the stipulated limit has resulted in a major financial burden on the national exchequer.