The country is facing Rs 216 billion financial loss per annum as a result of poor power distribution network and electricity theft while circular debt has reached Rs 450 billion. This was stated by Chairman Public Accounts Committee of the Parliament Syed Khursheed Ahmad Shah while heading a panel meeting here on Wednesday which met to discuss and review audit paras of the Ministry of Energy of 2016-17.
Secretary Power Division, Ministry of Energy, Nasim Khokhar told the panel said that Prime Minister Abbasi has recently approved establishment of Hazara Electricity Distribution Company (HESCO) while the remaining distribution companies would also be divided. He said that a sum of Rs 440 million is spent on transformation of 220 KV grid station to 500 KV grid station. He admitted that performance was not satisfactory due to shortage of staff, adding that the ministry in collaboration with other departments is making all-out efforts to improve the performance of power distribution systems to minimize huge line losses.
The officials informed the panel that the country is facing huge line looses of which Rs 160 billion are due to faulty grid stations and other distribution related problems while Rs 56 billion on account of electricity theft by various consumers including industries, general consumers and commercial consumers.
The officials said line losses could significantly be reduced by installing 220KV grid stations and the ministry is working on the plan to replace old grid stations but it will take time as 70 years problems could not be solved within two to three years.
Syed Khursheed Ahmed Shah said the PML-N after forming the government in centre has cleared circular debt worth Rs 480 billion to avert load-shedding but why once again it has reached the Rs 450 billion mark. He said when the price of oil was $120 per barrel then the per unit price of electricity was Rs 9 but now prices of oil have decreased rates of powers have been increased and now electricity is being sold at Rs 16 per unit.
He sought details of oil purchase and per unit electricity price. He further said that details of grid stations across the country must be provided to the PAC. He observed that officers committing corruption do not note meter reading and also level allegations of meter theft. He underscored the need to investigate this issue.
He said that affluent class was involved in gas and power theft while the onus is shifted onto the poor. Khursheed Shah further said that Parliament would not keep mum over the issue of power theft. He feared that people would quit purchasing electricity and shift to solar energy due to corruption. He said that cost of a transformer is Rs 150,000 while Rs 250,000 are being received from the poor masses.
The chairman PAC said that as a result of installing coal-based power projects in Punjab, almost ten percent population of the province has become victims of tuberculosis (TB) while lung diseases are on the rise due to smog.
Showing grave concern over the installation of coal-based power plants in Sahiwal, he said that such plants would be a cause of extreme air pollution and will result in great harm to the residents of Punjab, adding that the coal-fired power plants are not environment-friendly and would turn half the population of Punjab province into TB patients.
During the PAC proceedings, the opposition leader also criticized the continued absence of Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan from National Assembly sessions and PAC meetings. Khursheed Shah described Imran Khan's absence from Parliament as a "reflection of his political immaturity".
Talking about recent increase in electricity rates, Khursheed attributed the energy woes of Pakistan to the unsatisfactory performance of gas and power distribution companies. The chairman PAC said that the main reason behind the smog is that power projects are being run on coal. He underscored the need for shutting down these projects. He was of the view that cases must be registered against the government over the issue.
He said that the recent increase in oil prices is unfair, stating that such steps affect the poor strata of economy drastically. He demanded the government stop taking measures which stoke inflation. Mehmood Khan Achakzai called for imposing a ban on producing electricity through coal. He cited that China has shut down its coal plants and giving coal projects to Pakistan. Shah proposed that such projects should be established only in deserts.
Raja Javed Ikhlas said let the government end the load-shedding as the elections are approaching fast. To this, Shah said that the issue is not being politicized but facts are being discussed. "We are not talking about the people of Sindh but Punjab," he added.
The secretary power told the meeting that Port Qasim coal project would become functional from November 30. He said that 70 percent power projects are being run on coal in India. He said there was no coal project in the country before the incumbent government came to power. He said the incumbent government has installed power projects in Sahiwal and Port Qasim.
The meeting was also attended by Syed Naveed Qamar, Sherry Rehman, Mehmood Khan Achakzai, Raja Javed Ikhlas, Dr Azra Pacheho, Senator Hidaytullah, Senator Azam Swati, Shafqat Mehmood and Nazeer Sultan.
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