Energy deficit: Experts propose breaking of Discos into smaller companies

The energy experts have proposed breaking of large Discos into smaller companies to deal with energy deficit issues resolved on temporary basis by induction of 10,000 MW of power projects and induction of LNG. However, there are many issues that remain unresolved due to management of the system - some are created by new supplies such as that of import bill.
According to the energy experts, the electricity sector has been a subject of reforms and restructuring since long and has come a long way from being dominated by a monolith of Wapda to the dominance of IPPs and Discos. Oil and gas sector, however, has escaped or has managed to prevent reforms and restructuring.
As a result, they said, there are more problems today in the energy sector relating to performance, losses, transparency and others.
They said privatization and independence of the companies and empowering of the companies' boards have been the buzzwords and continue to be so.
Earlier, they added, there used to be an intermediate layer of corporations and boards which essentially undertook the planning and coordination functions and used to serve as accumulator of human resource capital.
However, disintegration of the energy sector has occurred with many untoward consequences and it is vital that consideration be given to revive those institutions like PEPCO and PERAC with required changes in the earlier style.
The experts have stressed that existing size of the companies like PESCO that spreads from Murree to Chitral and DIK is not amenable to direct management resulting in losses, leakages and theft.
It may be noted that circular debt, leakages and theft are the hallmark of the energy sector. Electricity and gas theft have become standard practice.
Some management approaches like fragmentation of large Discos and other technical approaches like installing smart meters on 11 kV substations and distribution transformers could be helpful in mitigating the problems.
They have apprehended that the furnace oil would be eliminated totally due to the induction of LNG and coal but both are imported that nullifies the putative advantage.
They further pointed out that inappropriate non-flexible fuel technology has been installed in coal power plants, which needs immediate redressal. Also, they said progress on Thar coal has been slowed down, as small scale approaches and other factors have made it expensive and even uneconomic. Major reforms in Thar coal and launching of a major initiative in this regard are immediately required, they suggested.