Power Division has reportedly prepared a plan to revive the defunct Pakistan Electric Power Company (Pepco) aimed at controlling the unbridled Distribution Companies (Discos) and implementing prompt decisions, well informed sources told Business Recorder.
The Cabinet Committee on Energy (CCoE) which is expected to meet early next week under the chairmanship of Prime Minister Shahid Khaqan Abbasi, will consider the proposal and allow Power Division to place its summary in the federal cabinet. Pepco had been disbanded by the government as a part of power sector reforms particularly to allow Discos to function independently, but this has not happened and the Power Ministry continues to influences decision making process of Discos besides remain engaged in transfer and posting.
The PPP government dissolved Pepco on October 1, 2010 and this was announced by former Minister for Water and Power who was later elevated to Prime Minister, Raja Peverz Ashraf. "The decision to dissolve Pepco had been taken on the plea that circular debt had reached Rs 400 billion which has now crossed Rs 1 trillion mark - Rs 541 billion circular debt and Rs 500 billion energy sector debt parked in the books of PHPL. Power Division, however, is ready to accept PHPL loans as circular debt as per the definition approved by the ECC last year.
"Power Division's proposals are dynamite though I cannot support a reversal of power sector reforms", said an official without sharing any further details. The disbanding was a part of a larger plan to resolve problems plaguing the energy sector.
Power sector analysts argue that revival of Pepco will be a departure from power sector reforms, agreed by the Government of Pakistan (GoP) with the international financial institutions like IMF, World Bank and Asian Development Bank (ADB) - agencies that have doled out billions of dollars to GoP on the condition that power sector reforms are implemented.
Another senior official told this scribe that what he understands is that the government intends to establish a monitoring unit as an arm of the Ministry to oversee the affairs of the power sector after getting approval from the CCoE.
The sources said that former Managing Director Omer Rasool, presently Additional Chief Secretary Punjab, had floated a similar proposal to wind up Pepco and set up a monitoring unit comprising 120 officers/experts of Pepco aimed at overseeing different affairs of power sector.
The sources said, Water and Power Development Authority had proposed ouster of the erstwhile Ministry of Water and Power, from day-to-day affairs of the power sector and taking control of the National Transmission and Dispatch Company (NTDC), Generation Companies (Gencos) and Central Power Purchasing Agency (CPPA) aimed at improving the performance of the system.
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