Islamabad: The Cabinet Committee on Energy has recently approved the establishment of a support unit for DISCOs, The electricity distribution companies, to enhance operational efficiencies, combat electricity theft, and improve the collection of overdue bills. The unit aims to start its operations with the Multan Electric Power Company.
According to Ministry of Information and Broadcasting, the decision was made during a meeting chaired by Prime Minister Shehbaz Sharif in Islamabad. The committee’s approval is part of a broader strategy to address challenges in the energy sector, including significant financial debts and inefficiencies in electricity distribution.
The new DISCOs support unit is expected to implement robust measures against electricity theft and facilitate the timely collection of electricity dues. Additionally, The Cabinet Committee endorsed an incentive package aimed at improving the recovery of unpaid and overdue electricity bills. This initiative includes awards for DISCOs workers and law enforcement agencies that succeed in bill recovery efforts.
Moreover, The Committee approved the Standardized Security Package Document under the Power Policy 2015 for small water projects managed by the private sector. This move is intended to foster private investments and swiftly resolve tariff and other power-related issues.
In another significant development, The forum extended the Refinery Policy 2023 for six months, focusing on upgrading existing refineries. The Ministry of Petroleum has been directed to engage with established oil refineries in the country to draft a comprehensive upgrade plan.
A detailed financial report presented to the committee revealed that the circular debt in the power sector had escalated to 2655 billion rupees as of May this year. In response, Prime Minister Sharif has established a new committee dedicated to ensuring a reliable electricity supply in Gilgit-Baltistan.