Pakistan: Sindh okays plan to acquire 2 state-run power distribution companies
Move could ease hardship of consumers who usually face prolonged power-cuts during summer
Karachi: The Sindh government has approved a plan to acquire two state-run electricity distribution companies in the province, that could lead to easing of consumers’ hardships.
A meeting of the Sindh cabinet with Chief Minister Syed Murad Ali Shah in the chair, among other items, approved the proposal to take over the Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO).
Top officials have often criticised the working of the companies, especially on account of prolonged suspension of power supply during peak summers, inflated electricity bills, and unduly harsh action against power theft.
The concerned provincial ministers in the past demanded that the federal government hand over the companies to efficiently run them so that consumers, especially in the rural areas, will not face power failures lasting up to 18 hours a day during summer.
They also called into question the logic behind the harsh punitive action of depriving electric supply to an entire village on account of power theft or low recovery of electricity dues.
The government in line with the concept of provincial autonomy granted under the 18th Constitutional Amendment already established its own electricity transmission and despatch company for facilitating new power projects, particularly the ones that rely on renewable energy.
The provincial authorities often emphasised that indigenous coal reserves in Thar and wind energy resources in Sindh have enough potential to meet the electricity demand of the entire country for many years to come.
While briefing the cabinet meeting, Sindh Energy Minister, Imtiaz Sheikh, said the federal government had agreed that instead of privatising the power distribution companies the same could be handed over to the relevant provincial governments.
The Energy Minister said the HESCO and SEPCO were going to be the first power distribution companies in the country whose control would be assumed by the provincial government.
Syed Murad Ali Shah, while approving the acquisition proposal, asked the Energy Minister to appoint a consultant firm for determining the financial status and human resources available to the two companies.
Ali SHah said that services of professional private sector partners would be engaged for running the two companies.