The Power Division has expressed willingness to share details of agreements with Independent Power Producers (IPPs) with the National Assembly Standing Committee on Power.
The newly appointed Secretary Power, Dr. Muhammad Fakhare Alam Irfan, testified before the committee and said the Power Division is ready to share complete details of the IPP agreements in a special session.
However, Irfan suggested that initially, his officers would brief only the committee members who have some knowledge of IPPs, and then the matter would be placed before the entire committee, either publicly or in camera. This suggestion was opposed by Dr. Tariq Fazal Chaudhry, who argued that the matter should be presented before the entire committee, not just a few members, to remove misconceptions among all the members.
Chaudhry stated that their contracts must be placed before the National Assembly Standing Committee on Power.
Chaudhry further said that the government has informed JI that it would explore ways to provide relief to consumers in terms of electricity tariffs, while also keeping in mind the conditions set by the International Monetary Fund (IMF). He acknowledged that the government wants to take measures to provide relief to the people, but is unable to do so due to other factors.
Responding to Shaikh Aftab, the Secretary Power, Dr. Muhammad Fakhare Alam Irfan, stated that the main reason behind the inflated electricity bills is the capacity payments in dollars and the losses of the Distribution Companies (Discos). He said that the electricity prices were increased due to the pressure of the IMF, which wants full cost recovery from consumers.
The Secretary Power also mentioned that the IMF has set a limit of Rs2.310 trillion for the circular debt in the power sector, which the government cannot exceed.
“We talk with the IMF but they are not ready to pay any heed to us. The IMF program was necessary for stability of country’s economy,” Secretary Power said.
The Chief Distribution Officer of Karachi Electric (KE), Sadia Dada, informed the committee that KE incurred a financial loss of Rs 30 billion last year due to theft, which is part of its balance sheet. She also stated that KE’s demand last year was 3500 MW, out of which the government supplied 1100 MW from the national grid.
The Power Division officials and the CEO of KE explained that the subsidy is given to the consumers of companies to maintain a uniform tariff across the country, and not directly to the companies.
The issue of a young man who prepared a parody of the song “Dill Dill Pakistan” as “Bill Bill Pakistan” was raised by PTI MNA Amir Dogar, who claimed that the young man has been picked to sing this song and that the government “neither allows the opposition to live nor to cry.”
The Joint Secretary of the Power Division briefed the committee regarding overbilling and unannounced load shedding in Karachi. He explained that the source of electricity
The committee expressed grave concerns regarding the overbilling issue, which has resulted in consumers paying heavy electricity bills.
Read more
NEPRA grills power distribution companies over proposed tariff hike
Former Commerce Minister exposes mismanagement and corruption in IPP payment deals
