Senate Standing Committee on Power on Thursday threatened to attach K-Electric's accounts through the Federal Board of Revenue (FBR) if its Chief Executive Officer Monis Alvi fails to attend the next meeting of the committee. The committee was seen all out in arms against the CEO KE when Chairman Standing Committee, Fida Muhammad stated that Chairman Senate Sadiq Sanjrani has asked for action against the CEO as he is not responding to his phone calls.
When KE officials revealed that the CEO was attending meetings with foreigners the committee members expressed anger while pointing out that CEO has not attended even a single meeting of the committee. Senator Mian Atiq who represents MQM (P) in the Senate said that when KE's accounts will be attached things will be alright. The committee, however, praised former CEO KE, Tayyab Tareen who is now Chairman of KE Board for attending the committee meetings.
Chairman Standing Committee argued that Chairman Senate was trying to contact the CEO for the last couple of years but he acts like a Pharaoh (Firon) and does not take his calls. "We neither want anyone to disrespect us nor do we disrespect him but we want him to be here in the meeting to respond to the committee's questions," he added. KE's official attending the meeting clarified that the CEO always attended Parliament's Standing Committee meetings.
The committee discussed KE's issues i.e. 650 MW electricity being supplied from the national grid, Implementation Agreement (IA) Gas Supply Agreement and Power Purchase Agreement (PPA) and directed Additional Secretary Power Division to bring these documents/agreements to the next meeting.
During discussion on 650 MW of electricity being supplied to KE from national grid, Senator Nauman Wazir maintained that when the agreement expired in July 2015, supply should have been suspended.
However, Deputy Managing Director NTDC, Ilyas Ahmed clarified that supply was not suspended due to political considerations and KE has obtained a stay order from Sindh High Court.
KE's Director Finance Amir Ghaziani gave a detailed presentation to the committee, saying that KE has invested $ 1 billion (KE $ 361 million and Government $474 million) from 2009 to 2017 and added 1,057 MW to its generation capacity. He said the utility's efficiency has improved to 37 per cent in FY 17 from 30 per cent in FY 09.
The debt equity ratio is 30:70 but acknowledged that more investment is required in the system. The utility's power demand stands at 3500 MW.
He further stated that the power utility's losses have declined to 20.1 per cent as of June 30, 2018 from 35.9 per cent in fiscal year 2009. KE officials informed the committee that there is no load shedding in 63 per cent of Karachi whereas maximum load shedding duration is seven hours.
Standing Committee inquired as to the reasons for the absence of Secretary Power Division from the meeting; Additional Secretary, Dr Aamir stated that he is in the Supreme Court which prompted Senator Mian Atiq Sheikh to state that according to the law Parliament is superior to the Supreme Court of Pakistan.
Senator Sadia Abbasi, former Prime Minister's sister, observed that presently Supreme Court is running the entire country.
The committee also discussed the reasons for the shutdown of 150 MW Lakhra Power Plant. Its two units are functional at de-rated capacity of 30 MW each and all its boilers require major repair/replacement at an estimated cost of $ 33.5 million.
The plant which sells electricity to CPPA on take-and-pay basis is on number 72 in economic merit order. The officials of Lakhra Power Company informed the committee that the plant was shut down on July 20, 2017 and when in operation its losses are Rs 400 million. Senator Moula Bux Chandio accused CEO CPPA Mr. Imran of trying to make the project unsuccessful and to then sell it to a private party.
After listening to CEO Lakhra, the committee directed him to submit the plant's rehabilitation plan to the committee so that an informed decision may be possible. The committee was also apprised that the Chinese company has given Nandipur's operation contract to Albarco Limited. The per megawatt cost of Nandipur project is $0. 9 million; Senator Nauman Wazir challenged the concerned official and directed him to present authentic information. He also raised questions about the tariff of 15 cents and interest rate of 27 per cent on loans taken by Quaid-i-Azam solar park.
CEO Quetta Electric Supply Company (Qesco) and Peshawar Electric Supply Company (Pesco) gave a presentation about their companies. CEO Qesco said that in Khuzdar losses are 95.5 per cent. Standing committee also directed Additional Secretary Power Division to ensure that material is not provided to the constituency till general elections are held as such activities can effect the outcome of elections.
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