So in 1990, another ordinance was issued, which was subsequently enacted as an Act transferring the 132 kV, 33 kV transmission and distribution system in the Greater Dhaka Area including the Metropolitan City to a newly created Government agency called the Dhaka Electric Supply Authority (DESA).

In view of this Improvement and the restructuring effort announced by the Government, the development partners have agreed to resume funding to the sector based on the principle of "Reforms Fundina Linkaaes" i.e. every project funded by these partners would have components addressing the reforms decided upon by the Government.

The Project has been linked to redefining the franchise area of DESA and handing over of distribution networks outside Metropolitan Dhaka City to Rural Electrification Board (REB), and formation of a corporatized Dhaka Electric Supply Company (DESCO) which will initially take over part of the distribution network of DESA and ultimately take over all its assets.

The formation of this company is seen as an essential step towards " Corporatization and Commercialization" of the sector and to reduce the excessive inefficiently in the distribution network in the capital.

To increase effectiveness in its field activities, DESCO has established 16 sales and distribution (S&D) divisions under 3 operational zones.

The procedure for new connection has been simplified to achieve greater consumer satisfaction and efforts are on to further reduce the average time now taken.

DESCO website is Secure Sockets Layer (SSL) protected and a consumer can pay their monthly bill easily online using debit or credit cards.

This division is divided into two departments: Medium Voltage Substation Maintenance & Commissioning (MVSSMC) and Grid & Protection (G & P).

Presently a number of projects are in an implementation stage under the "Sustainable Power Sector Development Program" (SPSDP)[12] and on turnkey basis by DESCO's own fund.

On 24 January 2000, three senior officials including the managing director of DESCO were fired for failure to perform their duty.

[14] In 2016, the Government plan to replace all electric meters with prepaid ones ran into trouble due to lack of skilled manpower and corruption.

[15] On 13 January 2020, Bangladesh Anti Corruption Commission raided the office of DESCO over the alleged purchase of substandard prepaid electricity meters.