Power sector reforms programme: Rs 180 billion to be saved by improving Discos' efficiency, says Nadeem

The government said it would save Rs 180 billion by improving the efficiency of power distribution companies (Discos) by granting them administrative and financial autonomy under the power sector's reforms programme.
While talking to journalists after the two-day workshop on power sector reforms, deputy chairman Planning Commission Dr Nadeem-ul-Haq said that the government would fill the gap between cost of power generation and cost of services by improving efficiency of Discos and arranging Rs 30 billion through budget.
"We will have little chance to raise power tariff to fill gap between cost of power generation and service after raising Discos' performance," he maintained. He further said that National Electric Power Regulatory Authority (Nepra) would be empowered to notify electricity tariff on monthly basis under the reforms programme.
Chairman Water and Power Development Authority (Wapda) Shakeel Durani said that the government had planned to raise hydle power generation capacity to 10,000 MW against the existing 6444 MW in next 7 to 8 years. At the end of the two day workshop on "Power Sector Reforms" arranged by the Planning Commission, a number of recommendations were made. The workshop was aimed at starting the implementation of reforms and to understand what the reform means to the companies and the consumers and to develop the new ways of operating in a post PEPCO regime.
The participants included government ministries/ departments, power generation and distribution companies, donors' representatives, other stakeholders-including academics, experienced professionals, consultants and representatives of consumer groups.
During the workshop the power sector companies were asked to review the revised business plan to align it with the power sector reform targets by the time of the next workshop. The companies also agreed to take up on urgent basis, loss reduction efficiency measures such as implementing smart meters and revamping the generation capacities to acceptable efficiency level apart from emphasis on modern governance methods.
The reforms will be designed and implemented by the transition committee headed by Deputy Chairman, Planning Commission oversight provided by a steering committee of stakeholders from Ministry of Finance, Ministry of Water and Power, Ministry of Petroleum and Natural Resources and Deputy Chairman Planning Commission.
The gist of discussions/ recommendations of the workshop are follows: The need for energy efficiency was emphasised. The construction of 747 MW combined cycle plant at Guddu with 51 percent efficiency needs to be expedited. The raising of Mangla Dam would increase storage capacity and the power generation although it would not increase its capacity.
The present financial health of most of the Discos is poor and urgent measures including the payables by public sector entities to them need to be addressed. The operation of Discos would be made more effective by giving them full autonomy and improving the distribution system. SMART metering system would be introduced to overcome the pilferage. The Corporate structure of the companies needs improvement. Electricity Act of 1910 and electricity rules of 1937 need to be revisited and updated.
Rationalisation of fuel mix needs to be undertaken by moving away from furnace oil to make electricity affordable. The new additions based on domestic as well as imported coal needs to be considered. The Basha and Dasu dams in the hydel sector would add 8500 MW to the system in the next 15 years. The need of corporate planning by all power sector companies was emphasised.