Prime Minister Nawaz Sharif is going to take people into confidence about key decisions contained in the energy policy which include installation of pre-paid smart meters in a bid to control electricity theft. Sources told Business Recorder that the Prime Minister would consume a considerable time of his first televised address to the nation on the issue of energy policy and measures taken by the government to overcome the challenge of power crisis in the country.
They said the Prime Minister would be addressing the nation as soon as the proposed Energy Policy is cleared by the Council of Common Interests (CCI). He would reveal to the public that he is going to take up the issue of non-payment of electricity dues by provinces and that the government is taking strong measures to eliminate electricity theft.
Concerned ministries are providing input to the Prime Minister's speech and informed sources indicate that it would highlight the fact that the process of resolution of energy crisis would require some very difficult and painful decisions. Many of them would cause difficulties to ordinary consumers especially when tariff adjustment would be required to bring a reasonable balance between the cost of supply and tariff.
Nawaz is also expected to state that if power generation does not keep pace with demand; and if losses incurred by Discos are more than the internationally accepted standards; and if 18 percent of billed amounts are not collected and if power producers and fuel suppliers are not paid, then the energy crisis will not go away.
The government has cleared the entire circular debt of Rs 503 billion that has been the primary bane of the power sector and because of this the country is generating over 15,000 MW of power compared to less than 9,000 MW when Nawaz Sharif took oath as the Prime Minister.
Nawaz is also expected to inform the nation that the government is taking harsh measures to eliminate electricity theft and non-payment of bills and nobody would get electricity if they do not clear their bills. "We are bringing in pre-paid and smart meters that will make this task easier to implement. We would hold discussions with chief ministers to ensure that provincial government bills are also paid on time," he is expected to state. Much of the new power added since the commencement of Nawaz Sharif administration was either hydro-based or gas-based, which significantly improved the energy mix for more economical power generation, he is likely to add in his speech.
The government efforts are directed towards adding new capacity that would largely be based on coal, gas, hydel and nuclear. Some of these projects will be on line within two to three years. "We are also fast-tracking the project for import of LNG, which will mostly be used for power generation," the Prime Minister is expected to state.
The Prime Minister would emphasise that the decision to adjust power tariff must be seen in the backdrop of the overarching objective of resolving the energy crisis and point out that in spite of this objective the government has been mindful of the relative payment capacity of our people and while it made full adjustment for industrial and commercial sectors, no immediate change in the tariff for the domestic sector was made.
However, Nawaz is likely to argue that given the fact that nearly 40 percent of electricity is consumed by the domestic sector, some moderate adjustment will be required at a later stage during the year to ensure that power supplies remain viable and sustained.
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