Federal government has decided to launch joint operation against defaulters and power thieves in collaboration with the provincial government, fearing that if current situation continues in the power sector, the country's economy will collapse. This was revealed by Secretary Power Division Irfan Ali at a meeting of Senate Standing Committee on Power presided over by Senator Fida Muhammad. Minister for Power, Omar Ayub was also present at the meeting.
The Power Division gave a detailed presentation to the committee about power sector issues and future development plans in addition to recovery drive to collect more than 800 billion from consumers. The committee recommended that employees of Wapda and Discos should be given an allowance instead of free electricity.
Secretary Power Division informed the committee that the Minister for Power and he would visit Balochistan and other provinces to formulate joint strategy for recovery from defaulters and action against power stealers. Minister for Power stated that with installation of ABC cabal, Kunda system is eliminated, adding that Discos will install device from transformer to meter which will help disconnect defaulters' and electricity thieves.
He said, in the first phase Kundas will be removed and action will be taken against big fishes across the country as in some hilly areas losses are upto 95 percent. He said collusion of staff with consumers will also be looked into. He further stated that circular debt has reached Rs 1.3 trillion ($ 10 billion) whereas current stock is around Rs 650 billion, adding that if this situation continues, country's economy will be collapsed.
According to Omar Ayub, the government will do away with inefficiencies of power Distribution Companies and create deterrence. Giving an example of Batagram, an area of Swat (KP) where one meter reader is for 20,000 houses he stated it is not humanly possible for one person to check that many meters. He acknowledged that fictitious meter reading also exists. Senator Nauman Wazir Khattak said Pakistan's circular debt was around Rs 1.3 trillion (Rs $ 10 billion) and the government was knocking on IMF's door for $ 9 billion loan; he suggested to the Power Ministry to collect that amount from defaulters to avoid going to the IMF.
He said the government supplied electricity of Rs 40 billion during last Ramadan to thieves, and urged the government not to give electricity to those people and link loadshedding to recovery and losses. Minister for Power stated that situation in Qesco, Pesco, Hesco and Sepco was alarming adding that replacement of meters and transformers require an investment of $ 5 billion. He said the government would get rid of loopholes.
Chairman Standing Committee informed the meeting that electricity was not available in Makran Division for the last two months. He further stated that there was no transmission line in Gwadar, and queried as to how electricity might be supplied to consumers as that area was not connected to national grid. The officials of Power Division informed the committee that Iran had suspended supply to Makran (Balochistan) due to domestic issues of electricity.
Senator Agha Shahzeb Durrani said that 12 hour loadshedding was being unleashed in urban areas of Balochistan. CEO Quetta Electric Supply Company (Qesco) apprised the committee that Iran had reduced power supply to Makran Division due to overloading of its own system. However, from July 1 to July 31, 2018 electricity was supplied till 12 am. Iran restored supply of 100MW from August.
One of the Senators asked if Iran has resumed supply then why people are not getting electricity, CEO Qesco stated that there are 90 percent losses in this area, adding there was Kunda system and 'no go areas'. He further stated that 70 percent was theft in that area and recovery was just 10 percent.
Chairman Committee questioned why Frontier Constabulary (FC) was not being used for recovery and to eliminate theft? He asked if FC was deputed to only kill people.
Senator Nauman Wazir said that free electricity to Wapda and Discos's officials was inflicting heavy loss to the national exchequer, and suggested that incentives should be made part of the salary. The committee recommended that power sector employees should be given an allowance instead of free electricity.
Karachi Electric (KE) Standing Committee expressed annoyance over the absence of Chief Executive Officer (CEO) of KE.
However, KE's Director Sajjad Asghar Khan Shahani informed the committee that CEO was in China. On this Chairman Standing Committee said that meeting was scheduled two weeks ago adding the CEO had only attended one meeting.
Minister for Power, Omar Ayub, took serious note of KE CEOs' absence from the meeting and suggested that the Chairman should reprimand the CEO.
Secretary Power informed the committee that it had been made clear to the KE management that the power utility could not be sold to Shanghai Electric Power (SEP) until liabilities are settled.
The convener of sub-committee on Lakhra Power Plant, Senator Nauman Wazir said he had held three meetings on that issue and would hold another meeting on the plant to finalise recommendations. He, however, informed the committee that the specifications of boilers' tubes were wrongly designed, adding the sub- committee would recommend rehabilitation of Lakhra plant on the basis of Balancing- Built-Own-Transfer (BBOT).