PEPCO dissolution date extended again

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After missing two deadlines for wrapping up the Pakistan Electric Power Company (PEPCO), the government on Tuesday announced that the dissolution process would be completed by the end of September.
The government had earlier committed with the International Monetary Fund (IMF) that PEPCO would be dissolved by June 30. This was an important commitment for the revival of the $11.3 billion standby arrangement facility suspended in May 2010. A statement issued by the Ministry of Water and Power said a meeting held under the minister discussed the issue of PEPCO’s dissolution.
Officials from the Economic Reform Unit, Planning Commission and PEPCO attended the meeting to review the timeline for transferring the functions of PEPCO and adjustment of the staff. An official source said the PEPCO MD sought an extension of another six months for the company to resolve the outstanding recovery issues, but the meeting did not concur with his arguments and pressed on dissolving the company by June 30.
However, PEPCO officials warned that the immediate dissolution would lead to increase in load shedding and should be delayed until at least September end. Since nobody was ready to take the responsibility of a failure to manage the demand and supply gap during summer, it was decided that the entity would be retained for another three months to avoid any kind of backlash, the source said.
Under the envisaged plan, PEPCO was to be dissolved from October 1, but it was delayed due to various issues until December 31 and later until June 30. The major reason for the dissolution of PEPCO was its failure to fulfil its mandate. A four step process was initiated for the dissolution of PEPCO in September 2010. Phase one, related to the reconstitution of boards of distribution companies (DISCOs) and National Transmission and Distribution Companies (NTDC), has been completed successfully.
This has ensured operational independence to power sector companies, as envisaged in the phase two that has been started by winding up departments within PEPCO and reducing PEPCO’s involvement in NTDC and Central Power Purchasing Agency (CPPA).
Meanwhile, strengthening of CPPA and NTDC is underway to strengthen the ongoing reform process. By late summer, the remaining departments will be disbanded to concluded the third phase.

2 COMMENTS

  1. Govt., Ministry Water & Power and Pepco official are inefficient.They have not ability to solve any problem and dissolution of Pepco because they are not clear about its matter.
    How to do & what to do?

    • yes pepco officers are inefficient, they are not serious in dissolution of pepco,because they are enjoying lot of benifits which are resstricted for core pepco, they are eojoying the benifits of leave encashment and more benifits.
      where as other employees in pepco(residual power wing) are not yet promoted having qualified departmental exam and training, there is no system of administration,compilation of accounts, audit, in pepco

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