Prior to sell-off of 2 Punjab-based Discos: Body to explore bifurcation feasibility

The Ministry of Privatisation has formed a technical committee to assess the feasibility of splitting Lahore Electric Supply Company (LESCO) and Multan Electric Power Company (MEPCO) into two or three smaller distribution companies before their planned privatisation.

 

According to officials, the committee will evaluate the operational, financial and strategic implications of the proposed restructuring, considering the companies' large service areas and comparatively weaker performance in terms of electricity theft, transmission losses and bill recoveries.

 

The committee has also been tasked with examining the potential benefits and challenges of the move in line with the National Electricity Plan, Power Policy and the government's broader privatisation programme. It will also review any previous studies or recommendations on similar restructuring efforts.

 

MEPCO, Pakistan's largest power distribution company by consumer base, serves around 8.76 million customers across southern Punjab, while LESCO supplies electricity to approximately 7.05 million consumers in Lahore and surrounding districts.

 

Both utilities have undertaken modernisation initiatives, including the rollout of Advanced Metering Infrastructure (AMI) and digital billing systems, but continue to face operational challenges. Recent audits for FY2024-25 reportedly highlighted unsatisfactory performance, reinforcing the government's push to evaluate structural reforms before privatisation.