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Trade bodies join political chorus to save under-fire CEO of a DISCO

by AMG
May 20, 2025
in Energy
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CEO HESCO appointment: Who is behind this kindness ?
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ISLAMABAD – The Power Division is reportedly under pressure to retain a politically connected Chief Executive Officer (CEO) of one of the worst-performing power distribution companies in Sindh, despite concerns over his performance.

Sources told Newzshewz that the CEO—who continues to occupy his position despite opposition from senior officials in the Power Division—recently confronted Federal Minister for Power, Sardar Awais Leghari, during a meeting of the National Assembly’s Standing Committee on Power. The confrontation revolved around discrepancies in reported losses and recovery figures of the Hyderabad Electric Supply Company (HESCO).

The committee has now directed the Secretary of Power to reconcile differences between the data presented by the CEO and the figures submitted by the Power Division. Updated statistics covering the periods from June 2023 to March 2024, and from June 2024 to March 2025, are to be submitted at the next meeting for further review.

The CEO reportedly drew the attention of PTI MNA Sher Ali Arbab, who has publicly extended his full support. Arbab warned that any coercive action taken against the CEO for challenging the minister could prompt him to move a Privilege Motion in the National Assembly.

Observers say the Power Division appears helpless when it comes to Sindh-based distribution companies, largely due to “political compromises.” It has failed to replace the boards of these companies despite their poor performance.

In a surprising move, trade associations—which traditionally have no role in such appointments—have written letters to the Power Division urging the retention of the incumbent CEO.

According to NEPRA’s State of Industry Report 2023-24, HESCO’s actual losses were 27.62 per cent against allowed losses of Rs 18.06 per cent, financial impact was Rs 23.177 billion.  Over-loaded power transformers among all the DISCOs followed by SEPCO with 28.15% and HESCO with 16.30%.

 Saqib Fayyaz Magoon, Senior Vice President FPCCI,  in a letter to the Power Minister, praised the CEO for addressing long-standing issues in Hyderabad’s industrial sector. According to Magoon, the CEO brought together key stakeholders to resolve critical challenges and ensured an uninterrupted electricity supply to commercial and industrial consumers.

Mr. Magoon also endorsed recommendations by HESCO President Adeel Siddiqi, who has requested that the CEO be retained on a long-term basis.

Also read the following:

CEO HESCO appointment: Who is behind this kindness ?

PD grills CEOs of three DISCOs for poor performance

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