KP sets precondition for taking over power distribution companies

PESHAWAR: The caretaker Khyber Pakhtunkhwa (KP) government has voiced reservations over the federal government’s decision to hand over control of power distribution companies (DISCOs) to provinces.

The KP caretaker government has declined an immediate takeover of the Peshawar Electric Supply Company (PESCO) and the Tribal Electric Supply Company (TESCO).

Senior officials in the interim KP government told HUM News English that the provincial administration contends that the interim federal government lacks the mandate to unilaterally assign DISCOs to provinces.

Officials emphasised that the Council of Common Interests (CCI) should be the appropriate platform for deliberating and taking such significant decisions.

The KP government has pressed for the CCI, comprising representatives from all provinces, to determine the fate of DISCOs once a duly elected government assumes power.

Sources within the interim KP government said that KP, along with Punjab and Balochistan, remains hesitant to assume control of DISCOs.

Federal cabinet greenlights transfer of DISCOs to provinces

Officials from KP’s Energy and Power Department said that in a letter to the federal government, the interim KP chief minister has conveyed concerns about the transfer of DISCOs to provinces.

The officials said that the KP government might consider assuming DISCOs’ control under specific conditions. They said that the federal government should first delegate power generation authority to the provinces and settle all outstanding dues of PESCO.

The officials further noted that financial constraints impede the provincial government’s capacity to manage PESCO effectively. Consequently, the KP government is not prepared for an immediate takeover of PESCO and TESCO.

In contrast, a report from the Peshawar Electric Supply Company Board of Directors indicated a surge in financial losses amounting to Rs80 billion compared to the previous fiscal year. The company’s total losses have reached Rs102 billion.