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Area Electricity Board (AEB) Hyderabad was one of the eight AEB's constituted through amendments in WAPDA Act during 1981. Later on Government of Pakistan approved revamping of WAPDA power sector in April 1998, resultantly twelve corporate entities were formed, Eight Distribution Companies (DISCOs), one National Transmission and Distribution Company (NTDC) and three Generation Companies (GENCOs). Now one more GENCO has been established. All these companies have been incorporated under Companies Ordinance 1984.

The company formed to take over/acquire all the properties, assets and liabilities of Hyderabad Area Electricity Board owned by Pakistan Water and Power Development Authority (WAPDA). The company was incorporated on 23rd April 1998 and certificate for commencement of business was obtained on 1st July 1998 from NEPRA under section 146(2) of Companies Ordinance 1984.