PC proposes separating electricity distribution networks from supply businesses under privatisation reforms

The Privatisation Commission has outlined a plan to split electricity network operations from retail supply before distribution companies are privatised, Profit by Pakistan Today reported. Its proposed model assigns network management to regulated operators, while licensed suppliers would compete over power purchases, billing, collections and customer services. Existing generation agreements and their capacity-payment duties would move from CPPA-G to suppliers alongside customer portfolios, while those contracts remain in force during the transition.

The paper says privatisation by itself would not resolve circular debt, high tariffs, weak grid demand or operating inefficiencies. It also proposes performance-based regulation, continued tariff protection for eligible consumers and a Supplier of Last Resort for each distribution region. Citing NEPRA data, the paper reports 5.7 million consumer complaints in FY2025 and 106,895 paid-for connections awaiting service, representing over 1,021 megawatts of unserved load; it cautions that some assumptions still need validation.