On Friday, Power Division officials informed senators that the federal government intends to utilize the National Finance Commission (NFC) award to deduct PKR 161 billion in outstanding energy bills from the shares allocated to all four provinces.
According to a report by The News, this plan has already received approval from the Council of Common Interests (CCI).
The controversial proposal would see PKR 68 billion docked from Sindh, PKR 42 billion from Punjab, PKR 41 billion from Balochistan, and PKR 10 billion from Khyber Pakhtunkhwa. This plan was reviewed during a Senate Standing Committee on Energy meeting, chaired by Senator Mohsin Aziz. These outstanding amounts have been owed by provincial departments for nearly three years.
Officials noted that only Punjab has, to date, assisted in reconciling these dues, while the other provinces have delayed the process for over two years.
Federal Minister for Energy Awais Leghari stated that 25% of the reconciled electricity dues could be deducted at source, following CCI approval. He added that the remaining amount would be recovered subsequently. Leghari clarified that these deductions would apply exclusively to reconciled accounts and confirmed that the matter had been raised with the Finance Division.
Regarding privatization, Leghari announced that three power distribution companies—Islamabad Electric Supply Company (Iesco), Faisalabad Electric Supply Company (Fesco), and Gujranwala Electric Power Company (Gepco)—are slated for privatization in the initial phase. These will be followed by Lahore Electric Supply Company (Lesco), Multan Electric Supply Company (Mepco), and Hyderabad Electric Supply Company (Hesco).
The Guddu and Nandipur power plants are also marked for privatization. Assuring senators, Leghari pledged to ensure employee protection during the privatization transition.
Officials from the Privatization Commission informed lawmakers that a financial advisor has been appointed for the first three utilities and is expected to submit its report by the end of May. This will be followed by roadshows and investor briefings, with the entire transaction process projected to conclude within six months.
Meanwhile, National Electric Power Regulatory Authority (Nepra) Chairman Waseem Mukhtar highlighted a PKR 7.41 per unit reduction in power tariffs due to fuel and quarterly adjustments. However, Senator Aziz cautioned that this relief might be temporary. Mukhtar echoed this concern, attributing it to plummeting hydropower output resulting from weak snowfall and receding reservoir levels.
