Power sector challenges highlighted in senate committee meeting

ISLAMABAD: The Senate Standing Committee on Power presided over by its Chairman Senator Mohsin Aziz held at Parliament House on Tuesday discussed key issues relating the power sector.

The Chairman of the committee emphasizing the importance of resolving the issues with Independent Power Producers (IPPs) which have become a significant burden for the nation highlighted that the primary problem was overpricing, making electricity unaffordable for the average person.

He suggested that Ministry officials conduct a comparative analysis of electricity tariffs in neighboring and regional countries.

Senator Mohsin Aziz also pointed out the need to consider factors such as heat efficiency, evacuation responsibility, capacity charges, and the performance of underutilized plants. The Minister Power Division assured the committee that the requested information would be provided transparently.

The Secretary (Power Division) briefed the meeting on power sector reforms, electricity supply and demand, generation capacity, the complexities of capacity planning and staggering/abolishment of committed power plants.

Senator Shibli Faraz added that the Power Ministry needs to plan for seasonal variations and avoid repeating the same records, as the current state of electricity is neither cheap nor reliable in the country. The Secretary acknowledged the inquiries and highlighted the underlying drivers behind these issues.

Similarly, the committee chair engaged in a detailed discussion on capacity charges and emphasized the need to end this cycle of overcharges.

During the discussion on consumer bills, Senator Shibli Faraz questioned the Ministry about ways to reduce electricity bills, a concrete plan to cut down circular debt, the past 10-year loan status, and the reforms undertaken by the Ministry. Senator Mohsin Aziz, the Chairman, emphasized that the issue of Independent Power Producers (IPPs) is long overdue.

He highlighted that the current situation has left people struggling with unaffordable electricity, industries considering ceasing operations, and the masses suffering from unemployment. Additionally, electricity theft has become a significant problem for the country. The Chairman requested explanations on the areas where electricity theft is prevalent.

The Minister stated that electricity theft varies by area and is influenced by the level of governance. The Secretary of the Power Division added that electricity theft has, in some communities, become a sub-culture, exacerbating the problem.

Moreover, the Chief Executive Officer (CEO) of the Multan Electric Power Company (MEPCO) provided a briefing on feeder-wise scheduled and unscheduled load shedding. He specifically mentioned that MEPCO covers 48% of all Punjab. Following this, the CEO of the Quetta Electric Supply Company (QESCO) delivered a similar briefing.

The Committee inquired about power theft in southern Punjab. The Minister (Power Division) informed that more feeders are located in areas such as Rajanpur, D.G. Khan, and Katcha Areas, including Kasur, where losses are the highest.

The committee members engaged in a discussion about area-wise load shedding, overbilling, and the status of complaints. The Minister of Energy (Power Division) also highlighted the functionality of the Roshan App, which allows users to accurately retrieve the usage of individual electric meters. Additionally, officials from the concerned departments provided a briefing on the total number of regular, contractual, and daily wage employees, along with their pay scales.

 

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