Federal cabinet greenlights transfer of DISCOs to provinces

DISCOs to provinces

ISLAMABAD: In a landmark decision, the federal government has granted approval for the transfer of ownership of electricity distribution companies (DISCOs) to the provinces, effectively ending the existing system of electricity sales, distribution and tariffs by the center.

The decision, a major step towards decentralisation, aims to promote better management and accountability at the provincial level.

The move, spearheaded by the caretaker federal cabinet, seeks to bring an end to the uniform tariff distribution of electricity across the country, allowing each province to independently manage electricity rates and subsidies.

This decision also aims to improve the efficiency of the power sector by tailoring electricity management to regional needs and demands.

As part of the comprehensive policy framework, the ownership of several key electricity supply companies will be reassigned to their respective provinces. Hyderabad and Sukkur Electric Supply Company will now be under the ownership of Sindh, while Quetta Electric Supply Company will be under the jurisdiction of Balochistan.

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Punjab will see ownership as Lahore, Gujranwala, Faisalabad, and Multan electric supply companies while the Islamabad Electric Supply Company will be jointly owned by Punjab and the federal government.

In a similar move, Peshawar Electric Supply Company and Tribal Areas Electric Supply Company will now be under the ownership of Khyber Pakhtunkhwa.

This transfer of ownership aims to empower provinces to make localised decisions and provide tailored services to their residents.

The decision to transfer ownership of DISCOs to provinces comes as a response to the long-standing challenges posed by electricity theft and non-recovery of dues. These issues have significantly burdened the national treasury, making this policy shift an imperative step to alleviate the financial strain.

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