WAPDA power companies submit ‘privatisation’ tariffs
By Khawaja Naseer
LAHORE: Water And Power Development Authority’s (WAPDA) eight distribution companies (DISCOs) have filed their independent tariff petitions with NEPRA well within the target date of June 30, a timeline agreed by the Government of Pakistan with financial institutions as part of the privatisation effort under the Power Sector Reforms Programme.
WAPDA sources said on Monday three generating companies and the National Transmission and Dispatch Company (NTDC) have already filed their respective tariff petitions. Similarly, the hydropower projects section of WAPDA has also filed a tariff petition with NEPRA.
“The commercialisation programme of WAPDA through Pakistan Electric Power Companies (PEPCO) has now entered its last phase,” sources added.
Four main points in the privatisation process include manpower transition to the newly formed corporate entities and delegation of adequate financial and administrative responsibility, ensuring functional autonomy of the companies through their boards of directors, licensing and tariff approval of each entity (power companies such as LESCO etc) based on their cost of service and delivery, allocations and transfer of assets and liabilities to the corporate entities and preparing selected companies for privatisation.
Sources said that manpower Transition Programme has already been completed earlier this year marking transfer of the employment contracts of more than 116,000 WAPDA Power Wing employees in-phases to corporate entities.
Similarly, all WAPDA assets and liabilities have been identified and handed-over to each entity for independent operations. The process of regulatory licensing has been completed.
“However, legal transfer of assets to the corporate is awaiting financial institutions’ consent,” sources added.