The Power Division has agreed to share the details of the contracts of the Electricity Distribution Companies (IPPs) with the National Assembly’s Standing Committee on Power with a view to taking the Committee into confidence for future action in this regard.
According to a Business Recorder report, while testifying before the committee, newly appointed Secretary Power Dr Muhammad Fakhr Alam Irfan said that the Power Division is ready to share the full details of the IPPs with the committee in a special meeting.
However, he argued that initially his officers would brief committee members who have some knowledge of IPPs and later the matter would be put before the entire committee publicly or in camera.
His proposal was opposed by Dr. Tariq Fazal Chaudhry on the ground that the matter should be placed before the entire committee and not before a few members. He further said that it is important to clear the misconceptions in the minds of all the members.
It should be noted that Dr. Chaudhry was part of the government team that negotiated with Jamaat-e-Islami (JI) during the sit-in. On this occasion, he said that IPPs are sucking people’s blood and their contracts should be placed before the committee.
He said that the government informed Jamaat-e-Islami that it will see how far it can go with regard to IPPs and provide tariff relief to consumers keeping in view the IMF conditions.
In response to Sheikh Aftab MNA, the Secretary Power said that the main reason for the expensive bills at the moment is the payment of capacity in dollars and the loss of discos. He added that electricity prices have been increased due to pressure from the IMF, which wants full cost recovery from consumers.
He said that the IMF has set a revolving credit limit of Rs 2.310 trillion for the power sector, which the government cannot exceed. We talk to the IMF but they are not ready to listen to us. The IMF program was essential for the stability of the country’s economy.
Expressing his views on the privatization of discos, the power secretary said that the government wants to get out of the electricity business. In the first phase three best performing DISCOs namely IESCO, FESCO and GEPCO have been selected for privatization or on long term management contract.
He said that the privatization of these three DISCOs would reduce the financial burden on the government exchequer, adding that the loss-making companies would be privatized after some investment in their systems.
The committee was further informed that discos established in Punjab are suffering a financial loss of 150 billion rupees annually.
The committee was told that out of the losses of Rs 500 billion, Hyderabad Electric Supply Company (HESC)’s share is Rs 205 billion. 318 feeders in Hesco are working at 80% loss and annual recovery is 75%.
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2024-08-17 07:48:16
