ISLAMABAD: Power Division is said to have failed to comply with majority of tasks including establishment of competitive electricity market in the country, assigned through Task Management System (TMS) of Prime Minister Office (PMO), well-informed sources in PMO told Business Recorder.
The sources said there were 147 tasks assigned to Power Division, of which 53 tasks have been completed whereas 77 tasks are overdue. However, 17 tasks are in progress.
During the review, it was observed with concern that 77 tasks assigned to Power Division are already overdue but no request from Power Division justifying extension in timelines or report on reasons of delay has been received.
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The sources said Boards of Private Power and Infrastructure Board (PPIB), National Energy Efficiency and Conservation Authority (NEECA) are still incomplete.
In case where reconstitution of Boards is in the pipeline (GHCL, CPGCL, NPGCL, LPGCL, NPPMCL) dates of Boards’ Committee would be communicated and progress expedited. On the issue of committee on additional utility scale Renewable Energy (RE) power projects in public sector it was apprised that the draft report has been prepared and final report and presentation are in its final stages by the Committee Members.
Presenting progress on financial model of the Advance Metering Infrastructure/ transformer meters for the loss making feeders in the first phase, it was noted that initially meetings were held with manufacturers to ascertain possibility of getting latest technology transformers of the following categories in line with international practices: (i) deployment of APMS (Asset Performance and Management System); and (ii) development of self-Protected/Smart Transform-ers.
Power Division submitted a PC-1 to Planning Commission for installation of APMS systems with 100/200 kV transformers (approximate amount is Rs 72 billions). CDWP recommended for PSDP 2024-25 with certain observations with almost all observations complying with separate PC-1s for Discos submitted on Intelligent Project Automation System. Approval from competent forum may be obtained after CDWP clears it. Power Division has also managed a fund commitment of S 200 Million from ADB for technological intervention to partially meet the cost for some Discos. Local manufacturers of transformers with built-in APMs may take some time. Further, talks with development partners are under way for exploring funding source.
As per DISCOS Plan, in the first phase AMI meters are being installed on 3-phase meters. Total 3-phase meters in all DISCOs are 1396263. Total 211496 AMI on 3 Phase meters have been installed up to June 2024.
As per plan, total remaining 1184767 meters are to be installed in the coming three years. ADB has committed to fund cost of 331900 meters (Approximate amount Rs.1.8 billion). Donor funding is also being explored for expediting installation of remaining meters in a shorter span of time.
Total Single phase meters in all Discos are 31619385. Total 1066487 meters are under installation and will be installed up to February-2025 in IESCO.
Remaining single phase meters to be installed are 30552898 whose cost is Rs. 915.587 billion (Rs 30,000 is the cost of single AMI meter for single phase). DISCO plans for installation of AMI on single phase meters are under process.
Funding source is being explored for installation of such meters. Meetings with donors including ADB and World Bank are under way to explore funding for expediting installation of AMI. Extension of time up to December-2024 is required from PMO.
First meeting of Steering Committee on solarization of Agricultural Tube wells in Balochistan and the progress is being evaluated.
No progress has been shared on the Working Group on solarization of diesel tube wells and a comprehensive plan including financial model and implementing mechanism for solarization of 100,000 tube wells across Pakistan (except Balochistan) in coordination with SBP and banks will be formulated; coordination with provinces will be made to avoid duplication. Plan to be presented to the Prime Minister for consideration.
The Task Force had also assigned Minister for Power to meet and brief industrialists/exporters on tariff reforms for industry. However, no progress has been reported by Power Division.
On the issue of subsidy rationalization, a Committee headed by PASS Division was tasked to finalize the action plan for direct subsidy disbursement and seek approval of Federal Cabinet, and here too nothing conclusive has been achieved and the matter is still under discussion and deliberation. PMO may push M/o PASS which is the lead ministry to conclude the task.
The Task Management System had also assigned Power Division to replace inefficient fans for enhancing local production capacity of efficient fans. Financing plan for replacement of inefficient fans will be finalized with commercial banks and Micro Finance institutions.
According to sources, the PM’s Fan Replacement Program is making steady implementation progress, NEECA is overseeing the overall development and regular consultation is being done with all stakeholders.
Digital Portal Development: The Punjab information Technology Board (PITB) has been tasked with developing the program’s digital portal. The development is ongoing. The participating banks have finalized the fan installment settlement process, which has been submitted to the State Bank of Pakistan (SBP) for approval. Upon approval, it will be shared with PITB, Discos, and settlement entities such as NADRA, Banks, and 1-Link for the implementation of at-source deduction. On-billing financing, NEECA, in consultation with the Ministry has requested NEPRA for deliberation, forDiscos and PITC for the integration of installment options into electricity bills.
On SEZs, Power Division to get approval of Federal Government and NEPRA for creation of a separate tariff category for the provision of electricity to SEZs (CPEC SEZs), meetings with stakeholders were held in this regard to address immediate concerns. With regard to proposals in house deliberations have been completed. Summary was circulated on 28th August 2024 on which response is awaited.
Once responses are received the summary will be placed before Cabinet. PMO intervention is needed to expedite the matter.
CTBCM: The matter of finalization of recommendations by the committee for optimal wheeling charges and its modalities (including gradual reduction of stranded cost, annual cap and availability of surplus capacity in the system) and approval of federal cabinet is still under deliberation at the working group level under the committee. The deadline ended on 30-9-2O24. Push from PMO is required to expedite the matter.
However, Winter Package has been finalized and announced by the Prime Minister, after approval of IMF, which will be submitted to NEPRA for final approval.
During the review, it was pointed out that the above tasks are only a handful of 77 tasks which are overdue. Power Division may adopt a proactive approach to complete these tasks. Incase extension is required, complete justification along with deliverables and timelines is required for submitting the case for consideration.
It was observed that there were a number of tasks that were either duplicate or of similar nature. The focal person was requested to work out the detail of all such tasks and identify those requiring archiving except the most relevant.
Summary boxes of a good number of tasks were also not updated. The focal person informed that the boxes were duly updated but now they are not visible due to some system glitch.
The problem was reported to PMDU team for resolution of the same. Power Division has been directed that Boards of PPIB, NEECA, are incomplete. ln case reconstitution of Boards is in pipeline (GHCL, JPCL, CPGCL, NPGCL, LPGCL, NPPMCL) dates of BNC must be communicated and process to be expedited.
Currently a task force on restructuring of power sector is also working on some of the tasks mentioned on TMS. There is duplication of tasks. This needs to be spelled out and a dedicated approach be adopted to address the issues.
Copyright Business Recorder, 2024
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