LAHORE, July 1: Eight distribution companies of Wapda on Monday filed their petitions for independent tariff before the National Electric Power Regulatory Authority (Nepra).

The filing of petition has been termed as one of the crucial milestones of the power sector reform programme.

The reform programme, conducted by the Pakistan Electric Power Company (Pepco), was based on four major steps - manpower transfer to eight distribution companies, delegation of sufficient financial and administrative powers to ensure autonomy through their board of directors, licensing and tariff approval of each entity based on its cost of service and delivery, allocation and transfer of assets and liabilities to corporate entities.

Manpower transition was completed earlier this year when more than 116,000 power wing employees were allocated to some distribution companies. Similarly, all assets and liabilities of Wapda have been allocated to various entities.

The process of regulatory licensing has also been completed. However, legal transfer of assets awaits lender’s consent.

With the filing of tariff petitions, the corporatization and commercialization programme of Wapda has entered a crucial stage and now Pepco will be obliged to prepare all these entities for privatization.