Pesco bifurcated to improve its efficiency, reduce losses

To improve the efficiency of Peshawar Electric Supply Company (Pesco) and reduce its losses, the federal government has divided the company into two companies.

PESCO shall be divided into two companies i.e. PESCO and new company with the name of Hazara Electric Supply Company (HAZECO), said a notification issued here by the Ministry of Energy (Power Division).

In pursuance of Rule-4(5) of Rules of Business, the Prime Minister has been pleased to approve the establishment of Hazara Electric Supply Company (HAZECO), vide their U.O. No.22/PSPM/2023 dated 4.01.2023. For overall better management of the electricity utility of Peshawar Electric Supply Company (PESCO), to increase the operational efficiency and reduce line losses and for improvement in customer services, the Prime Minister has been pleased to approve bifurcation of PESCO.

Accordingly, the following decisions are made: -

(a) PESCO shall be bifurcated into 02 companies i.e. PESCO and new company with the name of Hazara Electric Supply Company (HAZECO).

(b) PESCO shall comprise 06 Circles namely Peshawar, Khyber, Swat, Bannu, Mardan and Swabi Circles, whereas HAZECO shall consist of 02 Circles namely Hazara-l and Hazara-Il Circles with new Company's Headquarter at Abbottabad.

(c) To implement the bifurcation plan successfully, PPMC will assist PESCO and HAZECO.

Any point of difference in implementation of the above bifurcation between PESCO and HZECO will be referred to Power Division, said the notification.

It is worth mentioning here that in 2015 Pesco Board of Directors had approved the bifurcation of Hazara division into two circles (Abbotabad Circle and Mansehra Circle). The bifurcation of Pesco Hazara division into two circles (Abbotabad circle and Mansehra circle) was approved on administrative grounds.

In a bid to improve reduce line losses, bring efficiency and enhance recovery, in 2017 the federal government had decided to bifurcate three XWDiscos including Lahore Electric Supply Company (Lesco), Multan Electric Power Company (Mepco) and Peshawar Electric Supply Company (Pesco). However the decision has yet been implemented in one XDisco.

In its performance evaluation report of the XWDiscos for FY2021-22, released here by NEPRA said overall, the financial loss born by the national exchequer in FY 2021-22 due to breach of NEPRA targets by the distribution companies is around Rs. 122.6 billion. More than half of the losses Rs 64b were contributed by PESCO.

Similarly, the number of fatalities both for employees and public occurred during FY2021-22 in all distribution companies was 196. The highest number of deaths, 39, occurred in PESCO.