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NEPRA Calls for Privatization of DISCOs

Islamabad: The National Electric Power Regulatory Authority (NEPRA) has called for the privatization of distribution companies (DISCOs) as it released its performance evaluation report for 2019–20 (FY20), which revealed that despite constant directives and oversight by the regulator, neither of them had demonstrated any distinguishable performance.

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The study expresses worry about the failure to take action to reduce T&D losses in FY20, noting that DISCOs contributed to a loss of almost RS 59 billion due to their inefficiency and RS 160 billion in recovery.

Regarding the time frame for a new connection, NEPRA stated that it is alarming that power demand is not being generated despite the country having ample generation capacity and that factors contributing to less demand include the failure to provide new connections to eligible consumers within the required time frame.

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The study also discovered that the data provided by distribution businesses had been considerably falsified. The regulator has so far brought legal action against MEPCO for filing false data and other violations of the code of conduct.

It is important to note that NEPRA has chosen to postpone the rating of DISCOs based on performance until it receives trustworthy data. The regulator has started making moves to encourage DISCOs to use the AMI/AMR technology for this reason.

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