Power Division informs Senate panel: Government undertaking reforms to deal with circular debt challenge

ISLAMABAD: The Power Division has informed the Senate Standing Committee on Power that the government was undertaking reforms to deal with the problem of the circular debt.

While giving briefing to the committee meeting presided over by Senator Fida Muhammad Khan, Secretary Power Division Ali Raza Bhutta acknowledged that the circular debt was a serious issue, and improvement in performance of the power distribution companies was important as due to poor performance of discos the consumers of the power sector suffer. Senator Nauman Wazir said that the issue of circular debt warranted serious thinking.

KE's performance has been relatively much better in terms of reducing losses, he added. The committee also decided to seek details of late payment surcharge in the electricity bills of closed industrial units in erstwhile Fata, after Senator Muhammad Afridi was pointed out the matter, and stated, this was unjustified in terrorism-affected areas.

The committee was informed that the decision did not fall within the ambit of the Power Division, and the Nepra would review the matter in response to suggestion that late payment surcharge on every bill should be withdrawn.

On the issue of transfers of three Hesco officers; the committee was informed that the secretary Power Division would look into the matter. However, Senator Moula Bux Chandio said that it was unfair to award such a harsh punishment for verbal clash.

Upon this, the secretary power said that there would be no issue on the return of those officials back to the province. During consideration of public petition (PP-3304) of Ms Maryam wife of Abdur Rauf, resident of Sher Muhammad Colony, Kazi Ahmed, District Nawabshah, regarding disconnection of electricity meters, the Committee was informed that team S&I was deputed to visit the site on 29 September, 2020; as per this report.

Three shops and one godown were also operative on domestic tariff. The three-phase meter installed was showing a blatant error. The Committee was of the view that all of these installations call for a separate transformer, and directed the CEO Hesco to deal with the matter as per company policy.

The Pesco, on the latest position of installation of 1x31.5/40 MVA 132/11 KV power transformer at the existing 132-KV Grid Station, Dargai, District Malakand informed the committee, that construction of electrical equipment foundation had been completed, and the transformer had been shifted at the site.

The work is scheduled to be completed by December, 2020. Taking up the issue of under construction 132-KV Grid Station, at Dargai, District Malakand; the Committee was informed that the site for the project had been selected and the completion timeline was 2022.

The meeting was attended by Senator Nauman Wazir Khattak, Senator Dr Ghous Muhammad Khan Niazi, Senator Molvi Faiz Muhammad, Senator Moula Bux Chandio, Senator Mirza Muhammad Afridi, Senator Mushahidullah, Senator Dilawar Khan, and senior officers from the Power Division, the NEPRA along with all concerned.

Copyright Business Recorder, 2020