‘Publicly or privately’: PD says ready to share IPP deals with NA panel

ISLAMABAD: The Power Division on Friday conveyed its willingness to share details of agreements of Independent Power Producers (IPPs) with the National Assembly Standing Committee on Power, either publicly or in-camera aimed at taking the committee into confidence on future actions in this regard.

Testifying before the Committee, newly appointed Secretary Power, Dr Muhammad Fakhare Alam Irfan said the Power Division is ready to share complete details of IPPs with the committee in a special session.

He, however, argued that initially his officers will brief those Members of the Committee who have some knowledge of IPPs and later the matter will be placed before the entire Committee either publicly or in-camera. His suggestion, however, was opposed by Dr Tariq Fazal Chaudhry because the matter be placed before the entire Committee not a few members either publicly or in-camera, adding that it is necessary to remove misconceptions in the minds of all members.

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Dr Chaudhry, who was a part of the government’s team which negotiated with Jamaat-e-Islami (JI) during the sit in, said that IPPs are sucking the blood of the people and their contracts must be placed before the Committee.

He said the government has apprised JI that it would see how far it can go with respect to IPPs and provide relief to the consumers in tariff, keeping in view the IMF’s conditions.

“The government wants to take measures to give relief to the people but is unable to do it due to some other matters. We will take measures keeping in view the sword of IMF,” he added.

Responding to Shaikh Aftab MNA, Secretary Power said currently the main reason behind the inflated bills is capacity payments in dollars and losses of Discos, adding that electricity prices were increased due to pressure of the IMF which wants full cost recovery from consumers.

He said the IMF has fixed the limit of circular debt of power sector at Rs 2.310 trillion, which the government cannot exceed.

“We talk with the IMF but they are not ready to pay any heed to us. The IMF program was necessary for stability of country’s economy,” said Secretary Power.

Sharing his views on privatisation of Discos, Secretary Power said that the government wants to exit the electricity business. In the first phase, three better performing Discos, ie, IESCO, FESCO and GEPCO have been selected for privatisation or on long-term management contracts.

He said, with the privatisation of these three Discos, financial burden on government’s exchequer will reduce, adding that high loss making companies will be privatised after some investment in their systems.

The committee was further informed that Punjab-based Discos are incurring financial loss of Rs 150 billion per annum.

The committee was apprised that out of Rs 500 billion losses, share of Hyderabad Electric Supply Company (HESC) are to the tune of Rs 205 billion. In HESCO, 318 feeders are operating at 80 per cent loss and annual recovery is 75 per cent.

The NEPRA has allowed average losses of 11 per cent to Discos which are included in the tariff, whereas KE is permitted 15 percent losses. KE has reduced its losses from about 40 per cent at the time of privatisation to 15 per cent.

“In case 40 per cent losses of KE as at the time of privatisation had continued its financial impact would have been equal to the current level of power sector’s total circular debt,’ said, Syed Moonis Abdullah Alvi, CEO KE.

Chief Distribution Officer, KE, Sadia Dada informed the Committee that KE incurred financial loss of Rs 30 billion last year due to theft and it is part of its balance sheet. Last year, KE’s demand was 3,500 MW of which government supplied 1,100 MW from national grid.

It was explained by the Power Division officials and CEO KE that subsidy is given to the consumers of companies to maintain uniform tariff across the country, adding that it is not given to the companies.

The issue of the young man who prepared a parody of the song “Dill Dill Pakistan” as “Bill Bill Pakistan” echoed in the Committee room sung by PTI MNA Amir Dogar.

He claimed that the young man has been picked for singing this song, adding that they (the government) neither allow opposition to live nor to cry.

Joint Secretary Power Division briefed the Committee regarding overbilling and unannounced load shedding of electricity in Karachi. He informed the committee that source of generation of electricity is not same in every region. The generation of electricity in Karachi is through thermal resources which is one of the expensive forms of power generation.

The Committee showed grave concerns regarding overbilling due to which consumers have to pay heavy bills he meeting was attended by MNAs; Dr. Tariq Fazal Chaudhry, Sheikh Aftab Ahmed, Raja Qamar ul Islam, Chaudhry Naseer Ahmed Abbas, Syeda Nosheen Iftikhar, Rana Muhammad Hayat Khan, Muhammad Shehryar Khan Mahar, Khurshid Ahmed Junejo, Nauman Islam Sheikh, Syed Abar Ali Shah, Syed Waseem Hussain, Junaid Akbar, Sher Ali Arbab, and Malik Muhammad Aamir Dogar Muhammad Iqbal Khan and Syed Rafiullah, MNAs/Movers were also present in the meeting.

The senior officers from Ministry of Energy (Power Division) and its attached departments also attended the meeting.

Copyright Business Recorder, 2024