The federal government has assured electricity consumers that the privatisation of power distribution companies will not create additional financial pressure on households.
The assurance came during a meeting chaired by Federal Minister for Economic Affairs Ahad Cheema on November 10. Officials reviewed ongoing development programmes and preparations for privatising electricity distribution companies (DISCOs).
The government said the main objective of privatisation was to improve efficiency without shifting additional costs onto consumers.
Smart Metering Projects to Continue After Privatisation
The meeting discussed plans to install smart meters on transformers across all DISCOs. The project aims to reduce electricity theft, prevent overbilling and improve billing accuracy.
Ahad Cheema said the government was arranging funding for the initiative. He also assured participants that private investors would continue the project after taking control of the distribution companies.
If privatisation takes place while development programmes remain underway, authorities will transfer relevant financing arrangements to the incoming investors under agreed conditions.
NEPRA Approval Required for New Projects
The government also clarified that private investors cannot independently introduce new projects without following regulatory requirements.
Any new project must go through competitive bidding and receive approval from the National Electric Power Regulatory Authority (NEPRA), where applicable.
This process aims to maintain transparency and protect consumers from unnecessary financial burdens.
Government Says Consumer Interests Remain a Priority
Federal Minister for Power Sardar Awais Ahmad Khan Leghari and the Prime Minister’s Adviser on Privatisation also attended the meeting.
Officials discussed ongoing negotiations with international development partners. They agreed that these programmes would continue until the privatisation process reaches completion.
The government said it would protect consumer interests while ensuring that private investors meet their financial and contractual responsibilities.
The assurances come as Pakistan moves forward with plans to privatise selected power distribution companies. However, electricity tariffs will continue to follow the applicable regulatory and government notification processes.
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