Embedded Files
A pivotal step toward transforming GECOL into a transparent, efficient, and financially accountable utility built on clear cost centres and modern corporate governance.
Project Overview
The GECOL Corporate Reform and Financial Unbundling Framework establishes the roadmap for separating GECOL’s operations into distinct, traceable cost centres across generation, transmission, distribution, and supporting services. The framework provides the organisational and financial architecture needed to modernise GECOL, strengthen accountability, improve transparency, and prepare the sector for regulatory oversight and future reforms.
This work was led by Milad Zaed, Senior Advisor for Financial Restructuring and Energy Economics, ensuring that the framework reflects sound financial principles, clear cost allocation methods, and international best practices in utility restructuring.
Summary
GECOL’s previous structure placed all electricity functions under one organisation, making it difficult to track real costs or measure performance. The financial unbundling framework solves this by introducing a modern cost-centre model.
Generation, transmission, and distribution each operate as separate cost centres with their own budgets, accounts, and performance indicators. Supporting functions such as ICT, HR, procurement, finance, and logistics are reorganised into shared service units with transparent charge-back systems. This structure provides clear financial statements and operational KPIs for every unit.
The new model enables national institutions to see where costs arise, identify efficiency opportunities, and link tariffs to real operational needs. It also prepares GECOL for independent regulation and future sector unbundling.
Key Achievements
Established clear cost centres for generation, transmission, distribution, and support services
Developed a structured financial unbundling methodology based on activity-based accounting
Designed internal reporting tools for analysing costs, revenues, and performance per business unit
Strengthened corporate governance through clearer roles and internal controls
Enhanced transparency across operational and support functions
Provided a phased roadmap for implementing cost allocation, shared services, and corporate restructuring
Supported alignment with the new electricity law and future regulatory requirements
Impact
Accurate visibility into the true cost of electricity services
Stronger financial discipline and improved budgeting across all business units
Better operational performance through specialised, focused entities
Improved basis for tariff setting and long-term financial sustainability
Enhanced readiness for future corporatisation, regulation, and possible PPP opportunities
Increased investor and donor confidence due to transparent financial structures
A more accountable and performance-driven electricity sector
We can help your organisation
Green Power Associate supports utilities and governments in building cost-centre structures, financial unbundling systems, and corporate reforms that increase transparency and operational efficiency.
Our experts design accounting models, shared-services mechanisms, governance frameworks, and implementation roadmaps that align with international utility management standards and support long-term sector modernisation.
Report abuse