The caretaker government has issued an order for the transfer of ownership of electricity distribution companies to the provinces.
To accomplish this, the caretaker prime minister has granted approval to submit the summary to the federal cabinet. A decision has been reached to overhaul the existing system concerning the sale, distribution, and pricing of electricity under the caretaker federal government’s jurisdiction.
As a result of this federal government directive, the practise of implementing a uniform electricity tariff across the nation will be discontinued. Instead, the responsibility for determining electricity rates and providing subsidies will be entrusted to the respective provinces.
In line with these developments, the Hyderabad and Sukkur Electric Supply Company will come under the ownership of Sindh, while the ownership of the Quetta Electric Company will be transferred to Balochistan, according to HUM News.
Likewise, the Lahore Gujranwala, Faisalabad, and Multan Electric Supply companies will be transferred to the ownership of Punjab. The Islamabad Electric Supply Company will be jointly owned by Punjab and the Federation, while the Peshawar and Tribal Area Electric Supply Company will be under the ownership of KP.
As per official documents, a comprehensive policy framework has been formulated for the transfer of distribution company ownership to the provinces. This move is motivated by challenges such as electricity theft and revenue losses, which have placed a strain on the national treasury.
