Govt Picks Faster Route For LESCO And MEPCO Privatization

The government has opted to privatize Lahore Electric Supply Company (LESCO) and Multan Electric Power Company (MEPCO) in their current state, rejecting plans to break them down into smaller entities before the sale. This decision follows a review by the Technical Committee established by the Privatization Commission, which found that dividing LESCO and MEPCO would slow down the privatization process.

The Technical Committee, led by Sajid Akram and comprising experts from various relevant organizations, concluded that proceeding with the companies as they are would be more efficient. The Privatization Commission has also appointed a Financial Adviser to facilitate private sector involvement in the privatization of LESCO and MEPCO.

MEPCO, being the largest distribution company by consumer base, serves around 8.76 million customers across 13 districts in southern Punjab, while LESCO caters to approximately 7.05 million customers in Lahore and neighboring areas. Both companies face issues like electricity theft, line losses, and recovery rates that are below the standards of other distribution companies in Punjab.

Despite these challenges, both entities have been working on modernization efforts, such as implementing Advanced Metering Infrastructure and digital billing systems, aiming for complete smart metering coverage by 2029. The government's decision to move forward with privatization without the intermediate restructuring is anticipated to expedite the process and sidestep the administrative complexities and delays that could arise from dividing the companies.