MEPCO privatisation discussed

ISLAMABAD: The National Assembly standing committee on privatisation on Tuesday discussed the privatisation of Multan Electric Power Company (MEPCO) under the DISCOs’ privatisation programme.

The meeting of the committee was held under the chairmanship of Syed Mustafa Mahmud in the presence of Federal Minister for Privatisation Abid Hussain Bhayo, Federal Secretary Privatisation Dr Iram A Khan, MEPCO CEO and representatives from the Ministry of Privatisation and Ministry of Power.

Performance indicators of MEPCO and its privatisation status were discussed. The DISCO is one of the largest power distribution companies across Pakistan.

MEPCO officials presented the financial and operational data of the company, they also highlighted the challenges being faced due to the pending receivables. MEPCO officials also showed their reservations on the competitive trading bilateral contract model (CTBCM) approved by NEPRA, and expressed that the model has made certain unrealistic assumptions that could impact future privatisation or concession contract model being envisaged for the revival of DISCOs.

These DISCOs would remain the last resort suppliers, but the cost associated with this eventuality was not accounted for by the regulator as well as the standard cost, they said. “This unfortunately would not provide the level playing field to DISCOs due to its inherent flaw which will let the bulk power consumer (BPC) to opt for a private sector supplier which are not bearing the same magnitude of cost,” MEPCO officials added.

They also presented/discussed in detail the lead time involved due to the tariff process and its implications for CPPA and other stakeholders.