Privatising Discos won’t be enough

Pakistan's power sector faces a dual challenge: not only struggling with consumers who don't pay but also losing customers who can afford to pay, according to a former executive at K-Electric.

Years before joining K-Electric, the author led a large industrial company that opted for captive power generation because it was more commercially sensible than relying on the national grid. This experience, from the perspective of a major consumer, offered a stark view of the grid's operational and tariff issues.

Later, as COO Distribution at K-Electric, the author witnessed the same problem from the utility's side. This dual perspective reveals a critical lesson: the power sector is increasingly losing the customers that make it financially viable. This issue risks being overshadowed by the ongoing debate about privatizing electricity distribution companies (Discos).

While the government's move to privatize Discos rightly focuses on improving collections, reducing theft, and enhancing efficiency, these efforts may miss a more fundamental problem. The question of what happens when a utility steadily loses its most profitable customers remains a critical, yet often overlooked, aspect of the sector's challenges.