Govt to Privatise LESCO and MEPCO in Existing Form

The government has decided to privatise Lahore Electric Supply Company (LESCO) and Multan Electric Power Company (MEPCO) without splitting them into smaller distribution companies, according to sources familiar with the matter.

 

The decision was taken after a Technical Committee formed by the Privatisation Commission assessed whether the two large electricity distribution companies should be divided into two or three separate entities before privatisation. The committee concluded that keeping both companies intact would avoid delays and allow the privatisation process to move forward more quickly.

 

The committee was also tasked with examining the potential benefits and drawbacks of restructuring the companies in light of the National Electricity Plan, Power Policy and the government’s ongoing privatisation programme.

 

Meanwhile, the Privatisation Commission has decided to appoint a Financial Adviser to assist with private-sector participation in LESCO and MEPCO. It has invited qualified firms and consortiums with relevant transaction experience to submit proposals for the advisory assignment.

 

MEPCO, established in 1998, operates across 13 administrative districts of southern Punjab and is the country’s largest DISCO by consumer base, serving approximately 8.76 million customers. Its distribution network spans more than 82,000 kilometres and includes over 780 grid stations.

 

LESCO serves around 7.05 million consumers across Lahore and surrounding districts, including Kasur, Sheikhupura, Nankana Sahib and Okara. The company operates through eight circles and 41 divisions.

 

Both DISCOs have faced persistent challenges involving electricity theft, transmission and distribution losses and weak recovery performance. Recent audits for FY2024-25 also pointed to shortcomings in their overall operational performance.

 

At the same time, both companies have been pursuing modernisation initiatives. LESCO is working on Advanced Metering Infrastructure (AMI), digital billing and smart-meter deployment, while MEPCO has also been investing in grid modernisation, AMI and digital billing.

 

By retaining the companies in their current structure, the government aims to avoid the additional administrative work and delays associated with bifurcation and accelerate preparations for their privatisation.