ISLAMABAD   -  A parliamentary panel was Thursday informed that government’s task force on energy was close to finalising negotiations with independent power producers (IPPs), and has assured to come up with recommendations on revised agreements within two weeks.

However, there is a fear of fines on international forums if we terminate the agreements with IPPs, Secretary Power said while briefing the National Assembly’s Standing Committee on Power. The NA Standing Committee on Power, which met here with MNA Muhammad Idrees in the chair, was informed by Secretary Power Division Fakhr Alam Irfan that task force on energy is close to finalizing negotiations with IPPs as most of the discussions have been concluded and added that progress was expected soon.

However, we are legally bound and cannot take unilateral action while dealing with IPPs, he said. “We are in discussion with IPPs, under which some IPPs are to be asked to outrightly windup and those power plants whose life is up to 10 years will be extended to lessen the burden on consumers.” Special Secretary Power Division, who is also member of the task force, told the committee, “We cannot disclose the task force outcome so far publically, however in two weeks, we will hear good news.”

Committee members also highlighted the sensitive nature of the issue, calling for a special session dedicated solely to discussing IPP agreements and tariffs. A member noted the disparity in industrial and agricultural power tariffs, with industrial users paying Rs78 per unit, while the agricultural sector is charged Rs48 per unit. The committee questioned K-Electric’s readiness for monsoon challenges over the past five years, with Federal Minister for IT and Telecommunications, Aminul Haque raising concerns about infrastructure and power outages. “What preparations has K-Electric made in the last five years for the monsoon season?” Haque asked, further questioning how many utility poles have been properly earthed during this period.

K-Electric CEO responded by stating that power tripping during this year’s monsoon was significantly lower than the previous year. “Our system provides real-time information on how many feeders are operational or shut down,” the CEO explained. He added that K-Electric manages 230,000 poles, all of which have been earthed. “In the past two years, no fatalities occurred due to electrocution from poles,” the CEO emphasized. He also defended K-Electric from blame for a past incident, which the National Electric Power Regulatory Authority (NEPRA) had attributed to the utility, clarifying that the accident took place in a third-party compound.

Despite these assurances, Aminul Haque expressed dissatisfaction, remarking, “The CEO’s response gives the impression that everything is perfect in Karachi.” He called for a third-party audit of K-Electric’s poles. Addressing the issue of loadshedding, Haque pointed out discrepancies in K-Electric’s reporting. “The CEO mentions 4 to 6 hours of loadshedding, but in reality, Karachi experiences outages lasting 4 to 18 hours,” he said, adding that power is often restored 12 to 36 hours after a fault is reported. Committee Chairman Muhammad Idrees suggested holding the next meeting in Karachi to gain a better understanding of the situation on the ground. Khurshid Junejo, a member of the committee, emphasized the need for the NEPRA chairman to be present during future discussions on IPPs. NEPRA officials confirmed that full details of the government’s agreements with IPPs had already been provided to the committee. However, Amir Muqam, another committee member, suggested it would be prudent to wait until the IPP report is fully completed before conducting a detailed briefing.

The committee was to discuss the methodology for determining lifeline and protected consumers, but the absence of NEPRA Chairman Waseem Mukhtar sparked criticism from some committee members. Committee member Sher Ali Arbab expressed disappointment, saying, “The NEPRA chairman did not attend the meeting and sent a junior representative.” In response, the Power Division secretary clarified that the committee had not summoned the NEPRA chairman. “All the required information has been provided in the response given to the committee,” the secretary added, noting that the chairman could be called to future meetings if necessary.