In a major policy shift, government has decided to dissolve Pepco by this month of October 2011.The Government has to give GST refund to PEPCO. Government has decided to amend the National Electric Power Regulatory Authority Act to allow provinces to generate electricity to meet their needs. Robust regulatory mechanism will be put in place and Nepra will be strengthened.
The CCI meeting agreed last month in principle to allow Provinces to seek foreign investment in the power sector and also to manage their own tariff which hitherto had been within the federal government's purview. An amendment bill allowing transfer of more than 230 projects on energy generation from federation to provinces is also being prepared. Professional Management will be appointed in the power distribution and generation companies. Performance contracts will be signed with the new team of the companies. Government has decided that uniform tariff rate will be applied throughout the country. Government is preparing an Improved and efficient load shedding plan will be presented in the next cabinet meeting.
The Peoples government has launched a campaign for recovery of outstanding dues from private consumers within six months. Conservation measures include introducing two weekly holidays briefly implemented last year, this measure alone not only helped conserve 500MW energy, but also helped save millions of liters of fuel, besides preserving the environment from deadly fumes, besides having a positive social impact as the 50% energy conservation at the President and Prime Minister House, Secretariat, offices and residences of federal ministers, governors, chief ministers, provincial ministers and all government offices.
A ban would also be placed on commercial decorative lights, besides enforcing strict energy building code and a mandatory energy audit of industrial, commercial and public concerns. Replacement of around 216,000 outdated tube-wells across the country alone can save over 2,000MW of electricity. Federal Government, with the assistance of USAID, replaced 1,000 tube-wells and managed to save 65MW against the target of 45MW.
The ongoing hydro-electric projects are being undertaken by the China Three Gorges Project Corporation include Karot (720MW), Taunsa (120MW), Kohala (1,100MW), and Bunji (7,100MW) hydro-electric projects. Bunji hydro electric project is another gigantic project being undertaken by the Three Gorges Project Corporation with 7,100MW generation capacity. It is ready for site survey as the MoU for the project was signed in August 2009. Gomal Zam project's main dam has been completed. The project with a generation capacity of 17.4MW, will also contribute 91 million units of electricity annually to the national grid. The quantum of electricity is sufficient to supply electricity for about 25,000 households in the area.
The recent cabinet meeting, the prime minister has approved its plan and strategic guideline with all decision to make sure fast track installation of new power stations will be made and within the next 18 months 5000 MW electricity will be added to the system, henceforward. One thousand megawatts will be added through O&M, 1000 MW will be saved through energy efficiency, 1497 MW will be the new addition through thermal power generation, 1000MW will be added through wind energy. The present government has already paid Rs one trillion on account of payments in subsidising the power sector. The government has already added 3400 MW of electricity into the system.