The federal government has decided to transfer the power distribution companies (DISCOs) to provincial governments as it cannot bear the annual loss of Rs 300b of the companies, the 24newsHD TV channel reported on Monday. 

According to sources, the Prime Minister has ordered to constitute of a 13-member committee under the chairmanship of the Defense Minister to prepare recommendations within 10 days. 

The committee comprises Khawaja Muhammad Asif, Minister for Defence (Chair), Khurram Dastgir Khan, Minister for Power, Syed Naveed Qamar, Minister for Commerce, Musadik Masood Malik, Minister of State for Petroleum, provincial chief ministers and ministers nominated by CMs, Dr. Muhammad Jehanzeb Khan, Special Assistant to the PM, Finance Secretary, Secretary Power, Secretary Privatization Commission, Secretary Law and Justice and Provincial Chief Secretaries. 

In the case of the transfer of electricity distribution companies, the ownership of five distribution companies including LESCO will be given to Punjab. Likewise, HESCO and SEPCO will be given to Sindh, KESCO to Balochistan, PESCO and TESCO to Khyber Pakhtunkhwa. 

The committee will also work out the details of distribution license amendment and other regulatory conditions from Nepra. Provincial governments will have the authority to give a subsidy on electricity or not. 

The federal government will retain the authority of power generation and transmission. Preventing electricity theft and load-shedding schedule will also be the responsibility of the provincial government. 

Sharing details of the Terms of Reference (ToRs) of the committee, sources said that it shall examine the current constitutional framework for the transfer from federal government to respective provincial governments. 

Likewise, the committee shall examine requirements of NEPRA with regard to the change of ownership of its licensees.

 It shall draft intent, principles and the scope of the framework agreement to be signed between the federal and provincial governments regarding the mechanism for the transfer. 

Dr Syed Tauqir Shah, Principal Secretary to the Prime Minister has informed the secretary power and all concerned about the development in a letter dated 17th March 2023.

Reporter: Awais Kayani