The federal government and provinces are said to have reached an agreement on controversial amendments in the Nepra Act called ''Generation, Transmission and Distribution of Electricity Act, 1997 (Act XL of 1997)'' here on Tuesday. Consensus was evolved at a meeting convened by Minister for Water and Power Khawaja Asif and attended by Chief Minister Sindh Syed Murad Ali Shah, Chief Minister Khyber Pakhtunkhwa Pervaiz Khattak, Chief Secretary Balochistan, Chief Secretary Punjab and officials of the Ministries of Water & Power and Finance.
The key differences between the Ministry of Water and Power and provinces, especially Sindh and KPK, were about clauses 14, 21 and 31 of the Nepra Act. The meeting took into consideration the proposed amendments in detail. All the participants gave their inputs and the amendments were agreed upon after necessary modification/ improvements in the language.
The sources said the Ministry of Water and Power presented the draft of amendments in the Act in the light of proposals submitted by the provinces at a recent meeting of the Council of Common Interests (CCI), adding that as the provinces give concurrence on amendments, the draft Act will be tabled in the Parliament for approval.
The federal minister for water and power thanked Chief Minister Sindh and Chief Minister KPK for their keen interest in the matter. He appreciated them for their active participation in the process. He said the government is committed to building consensus on matters of national importance.
The chief ministers of Sindh and KPK also thanked the federal minister for water and power and assured their full support on matters of national importance. Later on talking to media, Minister for Water and Power Khawaja Asif said that a meeting has been held in accordance with guidelines of the CCI. The chief ministers of KPK and Sindh have expressed their viewpoints after which amendments have been finalised unanimously.
The chief minister Sindh, who was standing with the minister, said that Sindh had reservations and observations on the proposed amendments, adding that in accordance with the article 157(2) provinces have the right to establish own power generating units, install transmission and distribution systems and fix tariff but unfortunately it was not translated into the Nepra Act.
The national grid company shall not exclusively be considered the only company to provide transmission service in the service territory. In pursuance of Article 157 of the Constitution and Section 7(4) of this Act, a provision shall be made to allow Provincial Transmission and Despatch Company to share the service territory with national grid company in the respective provincial territories. The WAPDA has no mandate of transmission lines. KESC is now KE. A detailed section shall be inserted to define role, responsibility and domain of provincial transmission company, he said.
The CM Sindh further stated that the proposed amendment shall be restricted to establishment of thermal and renewable energy power projects in the country. However, it shall not be extended to a company or public entity which intends to establish hydroelectric generating stations. Any generating company or public entity intending to set up a hydroelectric generating station shall prepare and submit a detailed scheme covering all financial, geological, hydrological, technical, safety and environmental aspects to the Authority for its concurrence. The Authority, in turn, before concurring shall consider whether or not in its opinion the proposed river work will prejudice the prospects for the best ultimate development of the river or its tributaries for power generation and are consistent with the requirements of drinking water, irrigation, flood control or other public purposes. The Authority shall also satisfy itself before concurring that necessary technical studies have been conducted and NOCs from all stakeholders (IRSA, FFC etc) have been obtained.
A provision that a provincial distribution company may also provide identical service in a service territory already licensed to any distribution company shall be added. The provincial distribution company may provide such services in the whole or part of the service territory of any distribution company.
The KPK was of the view that dedicated transmission lines within the service territory of a distribution company will be contrary to the law. The proposed provision is borrowed from the Indian Electricity Act, 2003. The words used are not defined in the Act such as "Grid" and "Generation Station." Sale of electricity has also been made unregulated.
The CM Sindh further stated that the issue of bagasse-fired power plants was pending with Central Power Purchasing Agency Guaranteed (CCPA-G) and the minister has assured that the issue will be resolved. Sindh wants its tariff as early as possible, he said.
In reply to another question he said that Sindh is facing load-shedding of 18 hours a day.
Khawaja Asif said that it is the joint effort of federation and provinces to end load-shedding during this year, adding that it the responsibility of centre to resolve the issues of provinces. Replying to another question, the Chief Minister Sindh said that distribution of water should be in accordance with the Irsa Act. The Chief Minister KPK, however, did not speak to media persons after meeting with Minister for Water and Power Khawaja Asif.