The government has directed the National Electric Power Regulatory Authority (Nepra) to adopt a mechanism for power tariff determination among the Discos across-the-board, so that consumer of an efficient Disco should not have to bear the burden of inefficient one.
Briefing the National Assembly Standing Committee on Water and Power, Nepra Chairman Khalid Saeed on Monday said in the United States and India the same system is being practiced. The committee was further informed that the government and the rental power companies were equally responsible for delayed in the initialisation of Rental Power Projects (RPPs).
The Nepra Chairman said had the government completed the projects in time, the masses would not have faced long-hours ie, 16-20hrs power outage in most parts of the country. The committee meeting was chaired by Syed Ghulam Mustafa Shah, Chairman Committee and also attended by Nawab Yusaf Talpur, Sajjad-ul-Hassan, Chaudhry Abid Sher Ali, Bilal Yaseen and Pir Muhammad Aslam Bodla and others. He informed the committee that at present the country was confronted with severe power line losses.
Some of the distribution companies are facing up to 35 percent line losses due to multiple reasons, but electricity theft and non-payments by the consumers are two main issues, he added. At present line losses in Islamabad Electric Supply Company (Iesco), Lahore Electric Supply Company (Lesco), Gujranwala Electric Supply Company (Gepco) and Multan Electric Supply Company (Mepco) are 10 percent while Nepra has allowed 16 percent line losses, Saeed maintained.
He revealed that line losses in the system of Hyderabad Electric Supply Company (Hesco) and Peshawar Electric Supply Company (Pesco) are up to 35 percent. The committee was informed due to the involvement of staff in illegal activities and electricity theft the power distribution companies were suffering from such huge line losses. It was further informed that that the government has to pay a plenty of Rs 25 billion as it failed in timely paying to Independent Power Plants (IPPs).
Imtiaz Qazi, Secretary Ministry of Water and Power, while briefing the committee members, said that the ministry has directed the authorities concerned to disconnect meters of all public departments/ organisations which did not make payments and so far over 0.5 million electricity meters have been disconnected.
He said that the distribution companies have to recover over Rs 35 billion from public and private sectors and all the Discos have issued 15 days notices to defaulters, warning them that their electricity would be disconnected if they (defaulters) failed in paying the outstanding within the due date.
The members of the committee, while showing grave concern over the fuel adjustment charges, said that without providing power they were being asked to pay huge electricity bill. Bilal Yaseen Member Committee presented an electricity bill before the committee members, saying the Lesco has issued a bill worth 200 for the month of November, but fuel adjustment charges are 1,400.
Chairman Nepra explaining the bill informed the committee that during peak summer days the government was forced to make operational all the IPPs most of them were using furnace oil and diesel as fuel, which is the most expensive mean of power generation. He said that Fuel adjustment charges are for the month of June-July. Ijaz Jhakrani Member committee lamented that due to over billing by power distribution companies they were forced to go to courts.
Rasul Khan Mahsud, Managing Director (MD) National Transmission and Dispatch Company (NTDC) Limited said the up-gradation of transmission lines is not possible due to financial problems, as the company has received only $50 million against the required amount of $123 million for the purpose.
On a question, he replied that optimal running of the independent power plants (IPPs) need 31,000 tons of fuel, while at present government is providing them 8000-10000 tons of furnace oil and diesel, therefore IPPs are unable to produce optimal power. He further stated that power plants on gas daily need 780 Million Cubic Feet per Day (mmcfd) gas, while due to its shortage government is providing only 280 mmcfd.