ISLAMABAD - Federal Minister for Power Awais Ahmad Khan Leghari has announced that the Power Sector Task Force has completed its review of the independent power producers (IPPs) and state-run power plants, adding that good news regarding reduction in tariff to benefit the power consumers is on its way.
While briefing the Senate Standing Committee on Power, Power Minister Awais Leghari has however made it clear that no big relief is possible for the power consumers and efforts are being made to bring down the tariff gradually.
Senate Standing Committee on Power, which met with Senator Mohsin Aziz in the chair, was informed by the minister for power that the task force has thoroughly assessed the return on equity (ROE), operation and maintenance (O&M) costs and outstanding dues of these IPPs. Even we have thoroughly discussed that what plant in pipeline should be included in the system.
“We have previously provided the committee with all necessary information regarding IPPs,” Leghari said. “We will soon share good news with the public about the IPPs.”
The minister emphasized that the government is not taking unilateral actions regarding contracts with IPPs. The entire work is being conducted with the confidence of the IPPs and with mutual consensus, he added. Awais Leghari noted that the review included an evaluation of investment technology and all associated costs for each plant. He indicated that progress with IPPs will be announced in the coming weeks.
The Committee discussed a point of public importance raised by Senator Palwasha Muhammad Zai Khan regarding the overbilling of electricity bills and the indifference of officers/officials to the plight of consumers, as referred by the House for a report during its sitting on 30-08-2024. Senator Palwasha expressed concern over incorrect meter readings, stating that her family had to visit the office 28 times in three months, where they were met with misbehavior. Senator Palwasha condemned this conduct, labeling it as part of a mafia, and called for strict action. She suggested referring the matter to the FIA to dismantle this group and set an example. She emphasized that if such treatment could happen to her family, the hardships faced by the common public would be unimaginable.
The Committee chairman, acknowledging her concerns, agreed that the issue is of public importance and noted that the scale of suffering is likely far greater. A senior official from the Power Division, while concurring with the members, informed the Committee that actions had already been taken. The individual responsible has been transferred, and the faulty meter reading has been cancelled. He further stated that action has been taken against miscreants.
The Minister of Power Division added that what the Senator mentioned falls under customer care, which is not directly part of electricity distribution. He also noted that there is a complaint system, 118, and all calls made to this number are forwarded to the distribution companies. They are working on implementing a computerized system at the subdivision level and revamping it to ensure complaints are resolved with equal importance. He emphasized that simply transferring people is not the solution; they are striving to make real changes.
While emphasizing the need to address electricity theft and overbilling, Senator Mohsin Aziz, chairman of the Committee, also directed the Power Division to provide clarity in their reports, noting inconsistencies in their responses regarding the number of bagasse-based IPPs operating in the country and their tariff determination. He questioned how bagasse was priced at $53, stating that this is where the exploitation begins, as the price of bagasse cannot be easily determined. He suggested that the ministry cross-check bagasse pricing and explain why this issue arose in 2013 and 2015. He further added that linking the price to the dollar and imported coal has created a depreciation advantage for local operators. He recommended that the Ministry should review the bagasse pricing and submit a report accordingly.
Subsequently, a detailed report on loadshedding and feeder-wise electricity distribution was presented by PESCO and SEPCO. MNA Asif Khan (NA-32) raised concerns regarding his constituency, addressing issues of mistreatment, overbilling, and electricity theft. Similarly, Senator Mohsin Aziz pointed out the insertion of two feeders in one area, which has caused significant data discrepancies and requires cross-verification. He also highlighted discrepancies in feeder rates in the data provided by SEPCO, noting that line losses from one area seem to have been attributed to another.
In his closing remarks, Senator Mohsin Aziz recommended organizing the feeder-wise details more systematically by dividing the data into six-month periods and categorizing loadshedding under categories 2, 5, and 6 to provide a clearer picture. He also criticized the inappropriate behavior of PESCO and SEPCO towards the public, calling for an explanation for the widespread electricity theft. Based on the report, the committee will further investigate corruption within the responsible departments.