The Privatization Ministry has constituted a technical committee to examine whether Lahore Electric Supply Company (LESCO) and Multan Electric Power Company (MEPCO) should be split into smaller distribution companies before their planned privatization, as the government seeks to improve the structure and marketability of the two power utilities.
According to officials, the committee will assess the feasibility of dividing each utility into two or three smaller distribution companies before the privatization process moves forward. The panel comprises representatives from the Privatization Commission, Power Division, National Electric Power Regulatory Authority (NEPRA) and Power Planning & Monitoring Company (PPMC).
The move comes as both LESCO and MEPCO continue to lag behind other electricity distribution companies in Punjab on key operational indicators, including electricity theft, transmission and distribution losses, and bill recoveries.
The committee’s mandate includes evaluating the operational and strategic implications of such restructuring, examining its compatibility with the National Electricity Plan, Power Policy and the government’s privatization programme, and reviewing findings of any previous studies on the issue.
MEPCO, Pakistan’s largest electricity distribution company by consumer base, serves around 8.76 million consumers across 13 districts of southern Punjab through a network of more than 82,000 kilometers of distribution lines and over 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. The utility is also pursuing smart meter deployment and digitalization, although shortages of transformers and meters have delayed new connections and attracted regulatory scrutiny.
According to official audits for FY2024-25, both distribution companies delivered unsatisfactory operational performance, strengthening the case for examining structural reforms ahead of their proposed privatization.
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