The federal government split Peshawar Electric Supply Company (PESCO) into two businesses in order to increase its productivity and lower its losses.
According to a notification released here by the Ministry of Energy, PESCO would be split into PESCO and a new firm with the name Hazara Electric Supply Company (HAZECO).
According to their U.O. No. 22/PSPM/2023 dated 4.01.2023, the Prime Minister has been happy to sanction the establishment of Hazara Electric Supply Company (HAZECO) in accordance with Rule-4(5) of the Rules of Business.
The Prime Minister has been happy to accept the bifurcation of PESCO for overall better administration of the power utility, boosting operational effectiveness, reducing line losses, and improving customer services.
Peshawar, Khyber, Swat, Bannu, Mardan, and Swabi Circles shall make up PESCO, while Hazara-l and Hazara-Il Circles shall make up HAZECO, with the new Company’s Headquarter located in Abbottabad.
PPMC will work with PESCO and HAZECO to successfully implement the bifurcation plan.
The announcement said that the Power Division would be consulted on any points of contention between PESCO and HZECO about the execution of the aforementioned bifurcation.
It is important to note that the Pesco Board of Directors approved the separation of the Hazara division into two circles in 2015. (Abbottabad Circle & Mansehra Circle). For administrative reasons, the Pesco Hazara division’s division into two circles (Abbottabad Circle and Mansehra Circle) was allowed.
In its performance evaluation report of the XWDiscos for FY2021-22, released today by NEPRA, it was said that overall, the national exchequer suffered a financial loss of over Rs. 122.6 billion in FY 2021–22 as a result of the distribution companies’ failure to meet NEPRA targets.
PESCO contributed more than Rs 64 billion to the losses.
Similar to this, 196 fatalities, including both employee and public deaths, happened across all distribution businesses during FY2021–2022. 39 deaths total, the majority of which were in PESCO.