ISLAMABAD   -  National Assembly Standing Committee on Energy (Power Division) has noted with concern that if even after privatisation K-Electric is in loss, then how the privatization of other Discos will be beneficial.

The National Assembly Standing Committee on Energy (Power Division), which met with MNA Muhammad Idress in chair, has shown grave concerns regarding overbilling and performance of independent power producers (IPPs) and decided to obtain detailed briefing from IPPs in the next meeting.

Additional Secretary, Ministry of Energy (Power Division) has briefed the Committee regarding overbilling and unannounced loadshedding of electricity in Karachi. He informed the Committee that the means of generation of electricity is not same in every region. The generation of electricity in Karachi is through thermal resources which is one of the expensive forms of power generation. Under the government uniform tariff policy everyone in the country pays the same price for electricity in spite of the fact that the generation cost in the region is high. However, government provides differential payments to K-Electric in form of subsidy just to provide relief to the consumers.

Similarly, Chief Executive Officer (CEO) K-Electric Moonas Alvi informed the Committee that K-Electric has been facing significant financial losses due to increase in the number of defaulters. He said that the company incurred Rs30 billion losses during the previous year.

Member Committee, Tariq Fazal Chaudhry asked the CEO that who covers the KE’s losses? Moonas Alvi responded that the company pays for the losses. The subsidy given by the government is being paid to cover the tariff difference for the KE’s consumers.  Tariq Fazl said that if even after privatization and subsidy K-Electric is in loss, then how the privatization of other discos will be beneficial?

CEO K-Electric said that the company is facing severe financial constraints that are impacting the ability to provide reliable and affordable energy services. He further informed the Committee that 2000MW has been added to the national grid since the company has been privatised. Similarly, the losses of K-Electric have been reduced from 40% to 15% since privatisation.

Chief Executive Officer HESCO, while discussing the issue of overbilling, informed the Committee that there is no overbilling in HESCO jurisdiction. However, in case of any individual mistake regarding overbilling, the issue is investigated and bills are corrected as per procedure in vogue. He further apprised the Committee that 91.8% complaints received in respect of overbilling have been resolved successfully.

The meeting was attended by MNAs; Dr Tariq Fazal Chaudhary, Sheikh Aftab Ahmed, Raja Qamer ul Islam, Chaudhry Naseer Ahmed Abbas, Syeda Nosheen Iftikhar, Rana Muhammad Hayat Khan, Muhammad Shahryar Khan Mahar, Khurshid Ahmed Junejo, Nauman Islam Sheikh, Syed Abar Ali Shah, Syed Waseem Hussain, Junaid Akbar, Sher Ali Arbab, and Malik Muhammad Aamir Dogar. Muhammad Iqbal Khan and Syed Rafiullah, MNA’s/Movers, were also present in the meeting. The senior officers from Ministry of Energy (Power Division) and its attached departments also attended the meeting.