ISLAMABAD: Minister of Energy (Power Division) Sardar Awais Ahmad Khan Leghari announced that the government, in coordination with the Privatization Commission, is set to initiate the privatization process for Distribution Companies (DISCOs) by April 2025.
During an interview with a private news channel, Leghari detailed that the Expression of Interest (EOI) for the first batch of DISCOs would be published in April, with the expectation to finalize transactions within three to six months following the EOI.
The Minister highlighted plans to adopt a model similar to Turkey’s approach for the DISCOs, particularly those currently facing financial losses. This strategy involves entering into concession agreements that span 20 to 25 years, encompassing investment commitments and enhancement mandates.
Leghari pointed out that high interest rates and the rupee’s devaluation are primary factors contributing to the current elevated electricity prices. He further mentioned ongoing negotiations with Independent Power Producers (IPPs) to potentially lower electricity costs based on agreed terms.
In efforts to overhaul the energy sector, the government plans to reprofile debt, transition from imported to local coal, and curtail line losses, which Leghari noted could decrease electricity costs by about 7 rupees per unit. Moreover, the closure of older power generation plants is expected to cut capacity payments, reducing charges by approximately 66 paisa per unit.
