Key Takeaways
- The government has formed a technical committee to examine splitting Lahore Electric Supply Company (LESCO) and Multan Electric Power Company (MEPCO).
- This move aims to improve the structure and marketability of the two power utilities.
- Both companies are lagging behind in key operational indicators such as electricity theft and bill recoveries.
The Privatization Ministry has constituted a technical committee to assess whether Lahore Electric Supply Company (LESCO) and Multan Electric Power Company (MEPCO) should be split into smaller distribution companies before their privatization.
According to officials, the committee will evaluate the feasibility of dividing each utility into two or three smaller distribution companies as part of the privatization process.
The panel comprises representatives from the Privatization Commission, Power Division, National Electric Power Regulatory Authority (NEPRA), and Power Planning & Monitoring Company (PPMC).
Both LESCO and MEPCO have been lagging behind other electricity distribution companies in Punjab on key operational indicators such as electricity theft, transmission and distribution losses, and bill recoveries.
MEPCO serves around 8.76 million consumers across 13 districts of southern Punjab through a network of over 82,000 kilometers of distribution lines and more than 780 grid stations.
The company has been investing in advanced metering infrastructure and digital billing systems to improve operational efficiency.
LESCO supplies electricity to about 7.05 million consumers across Lahore and adjoining districts, including Kasur, Sheikhupura, Nankana Sahib, and Okara.
Both distribution companies have delivered unsatisfactory operational performance according to official audits for FY2024-25, which strengthens the case for examining structural reforms ahead of their proposed privatization.
