PAKISTAN ELECTRIC POWER COMPANY

The factors responsible for the shift in policies were: generation capacity could not be increased to meet demand, WAPDA's growth caused inefficiencies, 'demand suppression' and high tariff policy, proliferated theft. All these factors, over the years, adversely affected WAPDA's financial condition. As part of this programme WAPDA's functions under its Water Wing and Power Wing were to be segregated. It was previously envisaged that all power generation, hydel as well as thermal, would be corporatized. However, later on it was decided that the hydel generation should remain part of the Water Wing or the remaining WAPDA.

PEPCO has prepared the conceptual framework and is following a comprehensive strategy whereby WAPDA's vertical-monolithic Power Wing has been restructured into twelve (12) distinct autonomous entities under Companies Ordinance 1984. These are: three generation, one transmission and eight distribution corporate entities.

The restructuring programme of WAPDA's Power Wing is based on the new strategic policies of the GoP and endorsed and supported by the donor institutions. The aim of this transition is to install corporate and business culture through: adopting of good business practices, enhancing productivity and efficiency, including customer orientation and service culture, improving quality of services setting performance targets, reducing costs, theft and wastage. This will be based on extensive use of information technology, management information systems, monitoring and prudent decision making. It has been decided that some of the functions currently being performed by WAPDA will continue to remain with WAPDA/GoP in the largest interest of the country. These are:

	Hydel Development
	Hydel Operations