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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 are of national importance and will therefore continue to remain with WAPDA/GoP in the largest interest of the country. These are:
Hydel Development
 
Hydel Operations
Power System Planning
BackboneTransmission System

It was also decided that some of the common facilities, being previously shared by the two wings and by various departments within the power wing, should be segregated. These would initially remain with WAPDA unless transferred to any other particular corporatized entity. These facilities include hospitals, schools, training facilities and computer centre etc.

It will be interesting to note that initial plan conceived was to divide WAPDA into various corporatized units which would be owned by a holding company. Incidentally it was also named PEPCO. During due diligence it was felt that creation of such a holding company would only be a cosmetic change and lead to creation of yet another WAPDA. Therefore, the need was felt to create an entity to plan and execute the whole process of transition and should have no other role in the future.

 
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