The federal government Friday announced that it would ensure electricity supply to domestic consumers with uninterrupted supply to 'thieves' estimated to cost an additional Rs 40 billion at Sahar Iftar/Taraweeh during Ramazan with Discos allowed to adjust allocated quotas in accordance with their jurisdictional requirements.
This was the crux of a meeting of Senate Standing Committee on Power, presided over by Senator Nauman Wazir Khattak in the absence of Chairman Fida Muhammad who could not attend the meeting due to his father's illness.
Senator Nauman Wazir sought the financial impact of electricity to be provided to 'thieves' during Ramazan, which he estimated at around Rs 40 to Rs 42 billion. Additional Secretary, Power Division clarified that the financial impact will be calculated after the end of Ramazan.
Minister for Power and Petroleum, Umar Ayub Khan and Secretary Power, Irfan Ali briefed the committee about the measurers taken by the incumbent government to improve the system, the results of the drive against theft and defaulters and the future course of action. The results of the drive against theft in Sindh and other provinces were also shared with the committee.
Electricity supply will be ensured for four hours during Sahar (2 am to 6 am) and five hours (6 pm to 11 pm) during Iftar and Taraweeh, he said, adding that Discos have been directed to give priority to domestic consumers during this period. There will be no electricity for industry in KPK for 12 hours during Ramazan.
The Minister informed the committee that available power capacity this year would not be adequate to meet demand which is why the power sector has been asked to adjust power supply (load management) in consultation with the industrial sector. He said there will be a shortfall of 2500 MW due to high loss feeders but claimed that the incumbent government has increased revenue by Rs 51 billion due to its campaign against the thieves adding that former government's claims were not accurate.
"We have 30,000 MW installed capacity of which 26000 MW is de-rated capacity (efficient capacity) whereas available capacity is 24500 MW," Ayub added.
The Minister claimed that the government has added 3000 MW of electricity to the system by removing hooks in Sindh and KPK, in addition to actions taken in other provinces. He, however, clarified that the situation is different in Balochistan as many consumers are linked to those feeders which are specified for agri-tubewells.
Secretary Power, Irfan Ali stated that 80 per cent feeders will be load management free due to the actions taken by the Power Division and Discos.
The committee was informed that in Sehwan Sharif consumption has declined by 1.7 million units as hooks/direct connections of 402 Plazas in Hyderabad have been removed. It was further revealed that 10,000 MW of renewable energy will be added to the system by 2025 which will be further increased to 18000 MW by 2030. The share of renewable energy will be increased to 30 per cent.
According to officials, losses in Hesco have declined by 0.9 per cent during the period January-March 2019. Presently, losses in Hesco are around 29.6 per cent.
Senator Moula Bux Chandio appreciated the Minister and power sector team for the commitments made to the standing committee but stated that he would talk after Ramazan.
Secretary Power stated that Discos losses are being analysed on a monthly basis; and acknowledged that the situation in Balochistan is not satisfactory. Minister further stated that action has also been taken against transformers' repairing mafia and now repair will be done in public sector centres.
The committee was further informed that Lakhra's revival report prepared by the Senator Naumaz Wazir Khattak-led committee has been cleared by the Genco's Board and it will take another month. Minister maintained that the process will be completed legally. The issue of heat rate and profits of Independent Power Producers (IPPs) also came under discussion. Nepra officials including Rafique Ahmed Shaikh briefed the committee on both issues. The committee, however, was not satisfied with the briefing and directed Nepra to submit IPP-wise details, ie, per megawatt cost, technology and other factors.
Zaghaim of Nepra stated that the regulator can challenge fuel consumption but cannot touch the IRR. Nauman Wazir Khattak argued that IPPs were providing wrong fuel consumption figures and directed Nepra to review their heat rates. Nepra's officials stated that when they initiated a probe against IPPs, five of them went to the court and got stay orders. On this, acting Chairman Standing Committee stated that there are also more than two dozen IPPs so why has no action been taken against them.
According to Nepra, the reasons for variation in actual and allowed profits are as follows: (i) USD/PKR exchange rate variation on equity return; (ii) late payment structure; (iii) exorbitant furnace oil price; (iv) mismatch of depreciation and principal repayment; and (v) mismatch timing of O&M cost.