Unbundling of Discos critical to smooth operating of power system: PAC body told

While endorsing the unbundling of the power distribution companies (Discos), the secretary Power Division, Ministry of Energy, has said that controlling power theft, line losses and circular debt will continue hitting the system unless all the Discos are made independent.
While briefing a subcommittee of the Public Accounts Committee (PAC) here on Monday, which met under the chairmanship of Senator Shibli Faraz, Secretary Power Division Irfan Ali said that unbundling of all Discos is critical to smooth operating of the power system.
The secretary said that every Disco should have own power tariff structure based on input, output and other costs, adding that there should also be separate board of directors of the power distribution companies. He said that at present all the Discos operating in the country are working directly under the Pakistan Electric Power Company (Pepco) and Ministry of Energy Power Division.
Member Committee Syed Naveed Qamar said that under such circumstance, tariff determination of Discos from the National Electric Power Regulatory Authority (NEPRA) isn't suitable.
Responding to Naveed Qamar, the secretary Power Division said had their been separate power tariff for every Disco, tariff rate for the consumers of Islamabad Electric Supply Company (Iesco) would not have more than Rs 10 per unit.
The convener committee asked the secretary on the present status of Pepco and the secretary replied that Pepco is an attached department of his ministry which has been working in present shape since 2012 following the unbundling of Water and Power Development Authority (WAPDA).
Member Committee Munanza Hassan questioned the secretary Power Division as why the ministry failed to hold departmental accounts committee (DAC) meeting on certain audit paras related to Wapda since 2011-12. Irfan Ali said that it happened due to overload of work and other matters but now the ministry is regularly holding DAC meetings on audit objections and assured the panel that on the above subject, the ministry will hold a fresh DAC meeting immediately.
The panel directed the secretary Power Division and other concerned officials to devise terms, condition and rules of timely holding the DAC meetings in future with fixing the responsibility on the officials for causing delay in DAC meetings in past years, so that in future irregularities can timely be checked and audit paras can be settled.
The committee warned the secretary in case no such mechanism is devised, the panel will hold principal accounting officer (PAO) responsible for irregularities pointed out in the audit of the department.