The privatization of KESC demonstrates that private sector ownership in the energy sector has benefits in terms of efficiency gains. System losses are declining significantly, and KESC’s financial performance has improved substantially since privatization, such that it is now self-financing since first turning a profit in 2012. This accomplishment is remarkable considering the environment in which it operates includes a constrained availability of fuel for its thermal power plants and an unfavorable security and law and order situation. Nevertheless, the lesson is that unbundling alone is not sufficient and that subsequent privatization is needed so that improvements in the operational efficiency of the power sector can be realized.
Energy Sector Restructuring Program