ISLAMABAD, March 2: The National Electric Power Regulatory Authority (Nepra) has issued power distribution licence to Faisalabad Electric Supply Company (Fesco) with the right to provide electricity to consumers within an exclusive area up to eight kilometres of the farthest point of its present 11kv distribution system, according to an official spokesman.

Fesco has thus become the second company to receive distribution licence from Nepra. Earlier in November 2001, the authority had granted distribution licence to Islamabad Electric Supply Company (Iesco).

Following the grant of licence, the licensee companies are enabled to function as independent commercial entities free from the financial and administrative influence of government or Water and Power Development Authority, he said.

Both the companies were incorporated in 1998 after Wapda’s distribution section was restructured and carved into eight independent companies.

While functioning under Wapda, the geographical jurisdiction of Fesco, the spokesman further explained, comprised the administrative divisions of Faisalabad, Chiniot, Toba Tek Singh, Gojra, Sargodha, Bhalwal, Khushab, Jauharabad, Mianwali, Jhang, Bhakkar and Kallurkot.

He further clarified that the area under Fesco would stand extended as it carried out extensions within its service territory. They would also have the first right to extend its distribution and supply of power operations to new prospective consumers within a concessional territory defined by the administrative boundaries of the areas of Faisalabad, Toba Tek Singh, Sargodha, Khushab, Mianwali, Jhang and Bhakkar.

Within the exclusive service territory, however, following areas have been excluded from the operation by Fesco, the spokesman stated:

a) Areas in the use of defence forces;

b) Distribution system for consumer of small power producers operating and supplying power at the time of enactment of establishment of Nepra; and

c) Housing colonies and other bulk purchasers who were carrying out distribution through their own distribution system within their own premises at the time of the establishment of Nepra.