Government Moves Toward DISCOs Bifurcation – PPMC Seeks Working Papers-Notification

Power Sector Reform 2025: Major Changes Proposed for DISCOS Bifurcation Across Pakistan:

The Government of Pakistan continues to push its Power Sector Reform Agenda through actionable steps aimed at enhancing efficiency and governance. A significant development has surfaced with the Power Planning and Monitoring Company (Pvt.) Ltd. (PPMC) issuing an official direction to all Chief Executive Officers of DISCOS regarding a detailed analysis for the proposed bifurcation of larger Distribution Companies.

This initiative is expected to reshape how electricity distribution operates across Pakistan, allowing for more manageable, accountable, and efficient utility operations. As part of the reforms under Ministry Office Order No. 12(44)/2025-DISCO-I, each DISCO is tasked to submit a comprehensive working paper by 17^th April 2025, analyzing the feasibility of dividing large networks into smaller, performance-oriented units.

The notification outlines critical parameters for evaluation such as network strength, customer profile, technical and commercial performance, HR structure, and future cost-benefit outlook.

This move is likely to impact future load flow management, loss reduction, and overall power distribution stability in Pakistan. Please find notification:

POWER PLANNING AND MONITORING COMPANY (PVT) LTD.
No. 526-38/GM/(TS)/PPMC           Dated: 14-04-2025)

General Manager
(Technical Services)

Chief Executive Officers,
All DISCOS

SUBJECT:             WORKING PAPER-BIFURCATION OF DISTRIBUTION COMPANIES (DISCOs)

Reference:          Ministry Office Order No. 12(44)/2025-DISCO-I dated 08.04.2025

                              In pursuance of the ongoing reform agenda of the Power Division to enhance efficiency and improve governance in the Power Distribution sector, it has been proposed to analyze the plan of bifurcation of large DISCOS into smaller and more manageable units.

                              It is desired to prepare a comprehensive working paper assessing the feasibility and implications of the proposed bifurcation. The paper should include the duly completed attached tables and must address, but not be limited to, the following aspects:

1. Study of the Existing Electrical Network, including:

a. Area of jurisdiction

b. Customer profile

c. Number of employees

d. HT/LT network (feeders, average feeder length, distribution transformers)

e. Grid stations and transmission lines

f. Commercial parameters (losses, receivables, etc.)

g. Quality of service

2. Analysis of Proposed Networks after bifurcation

3. Study of CDPs and power sources for proposed new companies

4. Load flow studies to evaluate network stability post-bifurcation

5. Justification for bifurcation, including:

a. Loss reduction

b. Improved recovery performance

c. Reduction in transformer damage rates

d. Enhanced power sales

6. Benefit-Cost Analysis

7. Proposed HR Setup for new companies

8. Manpower transition plan

9. Distribution of assets and liabilities

10. Proposed Headquarters location for new companies

11. Budgetary requirements and proposed approvals

12. Posting arrangements for personnel in new entities

13. Allocation of stores and assets

The working paper along with complete data should be submitted to PPMC by 17.04.2025.

General Manager
(Technical Services) PPMC

Strategic Reforms in Power Sector Underway: Will Bifurcation Improve Service Delivery?

The bifurcation of DISCOs is a bold and strategic move under Pakistan’s Power Division reform efforts, aiming to create streamlined operational networks that can deliver better service, reduce line losses, and improve recovery. As the country grapples with increasing energy demand and technical bottlenecks, this initiative may provide the long-term sustainability that the power sector needs.

By splitting large DISCOS into smaller, more efficient entities, the government expects to see better governance, accountability, and faster responsiveness in addressing consumer complaints and outages. Moreover, this structural change will likely bring in modernized HR practices, fair manpower transition, asset allocation planning, and improved billing recoveries.

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