**ISLAMABAD:** The Ministry of Privatisation (MoP) has established a technical committee to examine the feasibility of splitting the **Lahore Electric Supply Company (LESCO)** and **Multan Electric Power Company (MEPCO)** into two or three smaller distribution companies before their proposed privatisation, informed sources said.
According to the sources, the move is aimed at determining whether restructuring the two largest power distribution companies (DISCOs) could improve operational efficiency and enhance their attractiveness to potential investors.
The committee is chaired by **Sajid Akram**, Adviser (Power) at the Privatisation Commission, and includes **Ghulam Rasool**, Joint Secretary (Privatisation), Power Division; **Imran Hafeez**, Additional Director (Tariff), NEPRA; and **Abid Lodhi**, Managing Director of the Power Planning and Monitoring Company (PPMC).
Officials said both LESCO and MEPCO have consistently underperformed compared to other Punjab-based DISCOs, particularly in terms of **electricity theft, transmission and distribution losses, and revenue recovery**, making structural reforms a key consideration before privatisation.
MEPCO, incorporated in 1998 and wholly owned by the federal government through the Ministry of Energy, operates under a permanent distribution licence issued by the National Electric Power Regulatory Authority (NEPRA). It serves **13 districts of southern Punjab** and is Pakistan’s largest power distribution company by customer base, supplying electricity to approximately **8.76 million consumers**.
The utility manages a network of more than **82,000 kilometres of distribution lines** and over **780 grid stations**. It is currently pursuing grid modernisation through **Advanced Metering Infrastructure (AMI)** and digital billing systems to improve transparency, operational efficiency and customer service.
LESCO, which also began operations in 1998, provides electricity to around **7.05 million consumers** across **Lahore, Kasur, Sheikhupura, Nankana Sahib and Okara**. Its operations are organised into **eight operational circles** and **41 divisions**.
The company is implementing a phased rollout of **smart meters (AMI)** with the goal of covering its entire consumer base by **2029**. However, shortages of transformers and electricity meters have delayed new connections and equipment replacement, leading to regulatory concerns and consumer complaints.
LESCO is also working to improve customer services through faster connection processing, enhanced complaint resolution mechanisms and expanded digital billing services.
According to audit findings for **FY2024-25**, both utilities continued to post unsatisfactory operational performance.
The technical committee has been tasked with:
* Assessing the feasibility of dividing LESCO and MEPCO into smaller distribution companies;
* Evaluating the strategic advantages and challenges of such restructuring in line with the **National Electricity Plan**, **Power Policy** and the government’s privatisation programme; and
* Reviewing whether any previous committee examined a similar proposal, along with its findings and recommendations.
The committee’s recommendations are expected to help shape the government’s strategy for the future privatisation of the two major power distribution companies.
Story by Mushtaq Ghumman
