ISLAMABAD   -   A Senate panel has decided to deliberate on Muhammad Ali report, which had recommended the government to recover overpaid Rs100 billion from IPPs and to review Power Purchase Agreements.

In its upcoming meeting Senate Committee on Power has decided to discuss Muhammad Ali Committee report of 2020, to the extent of IPPs, which had pointed out that IPPs have unfairly earned Rs350 billion on the basis of power policy 1994.

According the report, against the NEPRA determined  15 per cent profit for IPPs, the private power producers had earned 60 to 70 per cent profits per annum.

Notably, in 2020, the Tehreek-e-Insaf government had constituted a committee to find the root cause face by the country’s energy sector. The committee headed by former Chairman SECP, Muhammad Ali and was comprised Additional Secretary, Power Division, nominees of National Electric Power Regulatory Authority (Nepra), Central Power Purchasing Agency-Guaranteed (CPPA-G), National Power Control Centre(NPCC), a Federal Investigation Agency (FIA), Securities and Exchanges Commission of Pakistan (SECP) and ISI as members of the committee.

The committee had scrutinised the data of the IPPs and it took over six months to finalise its report. The committee had recommended the recovery of overpaid Rs100 billion from IPPs. It had further recommended the government to review PPAs with IPPs as it extends undue benefits to the private power plants.

Similarly, responding to the complaints of up to 18 hours load-shedding, during the peak summer month, in the provinces of Sindh, Khyber Pakhtunkhwa, and Balochistan, Senate committee on Power has summoned the CEOs of three worse performing discos including SEPCO, PESCO and QESCO.

The Sindh-based Sukkur Electric Power Company, KP-based Peshawar Electric Supply Company Limited and Balochistan-based Quetta Electric Supply Company have resorted to inhuman load-shedding of up to 18 hours, during the peak summer months of July and August, on the pretext of losses and theft.

The meeting of the Senate Standing Committee is scheduled next week has summoned the Chief Executive Officers of SEPCO, PESCO and QESCO to brief the committee regarding scheduled and unscheduled load-shedding of electricity during last two months — with feeder-wise, tehsil-wise and district-wise details. The detailed chart showing daily load-shedding, during last two months should be provided of each feeder. Feeder-wise details of total electricity consumed during last two months. The CEO will also brief the committee on feeder-wise detail of theft of electricity and line losses during last two years.

The number of complaints received during last one year regarding, overbilling and current status of those complaints will also be shared with the committee. The committee will be briefed regarding total number of employees including regular, contractual and daily wagers along with their pay-scales.

The Secretary Power Division and the Chairman NEPRA to brief the committee on the number of Bagasse-based PPs operating in the country, basis of their tariff determination, the total installed capacity of Bagasse-based power projects, the pass through cost of Bagasse-based power plants, the reasons of working of bagasse price and corresponding FCC on the basis of price of the imported coal (South African) using heating and value of both fuels. The committee will also be briefed on the  the terms & conditions of Upfront ‘Tariff tor the Bagasse-based  projects.