Devolving DISCOS

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Islamabad's recent decision to hand over control of power distribution companies (Discos) to the provinces could prove to be highly beneficial for the federal government, provinces and citizens alike, but it is more likely to worsen problems related to the power sector.

This is because moving control to the provinces will help ensure more localised management, which would be more invested in maximising the benefit derived from their local Discos. Unfortunately, local control does not mean better or more competent management, and the change could open the door for corruption or other forms of unscrupulous management practices, such as nepotism.

Provinces are also usually better positioned to understand their specific energy needs, demographics and consumption patterns. By having regional autonomy in electricity distribution, provincial governments can tailor solutions that address unique challenges, such as reducing theft and improving recovery rates. This localised control may lead to more effective strategic planning and investment in infrastructure, potentially resulting in better service delivery for consumers.

On the other hand, the administrative change makes redundant the politicised practice of protesting and threatening Discos, because the provincial ruling parties will be responsible for getting the power companies to actually perform at an acceptable level. But there is a legitimate concern that provinces are not ready to take on the additional work.

Most provinces lack the necessary infrastructure, expertise or financial resources to handle the responsibilities that come with running Discos. Without adequate capacity, mismanagement could easily lead to further losses and deteriorating service quality.

There are also disparities among provinces in terms of resources and financial stability. This imbalance could result in inequitable access to electricity, with wealthier provinces having better services while less affluent regions may continue to suffer from outages and inadequate supply. Such a scenario could exacerbate existing regional inequalities, leading to social unrest and dissatisfaction.