PML-N unveils rational energy policy

If the latest surveys provide any hint to who will be in charge of the next government, PML-N manifesto is of high significance. The PML-N has released a detailed manifesto document, which talks in detail about the possible steps to resolve the prevailing energy crisis. How it actually transforms is anybody’s guess, but on paper, it largely appears the right strategy.
The strategy that the PML-N promises to adopt by and large mirrors those laid down in the Integrated Energy Plan, developed by the Energy Expert Group, back in 2010. PTI was the first political party to announce a detailed Energy Policy, on the same lines. It is heartening to see that two of the three mainstream political parties have adopted a rational policy rather than a populist one.
The manifesto promises to form a central Energy Ministry, which is the right way to begin and one for which the experts have long been arguing in favour of. PML-N intends to decentralise the power sector and follow Nepra determined tariffs, nationwide, based on weighted average cost. Tariff rationalisation has also been promised in addition to elimination of cross subsidy in the power sector. The only tariff subsidy provided, would be for the lifeline consumers using up to 100 units a month.
On the energy mix front, it vows to replace the existing furnace oil based plants to imported coal, another step that seems the right thing to do. Revamping the Discos, privatising Gencos, limiting line losses and increasing bill collection efficiency are other steps that the policy states – all of which are imperative to ensure energy security in the country.
The manifesto acknowledges that the current natural gas crisis is of even higher magnitude than the one in the power sector and promises a number of steps to resolve it. The Policy outlines the power sector to sit on top of priority list of gas supply, to ensure uninterrupted gas supply and reduce the power tariff, which should be good news for gas-based power plants and would surely help towards reducing tariffs and lessening the circular debt problem.
There appears to be good sense behind the promised strategy to rationalize gas tariffs across the board, which should lead to elimination of subsidies. The Policy also promises to carry a blanket ban on new CNG stations, and prioritizing public transport for CNG usage, both economically rationale and un populist decisions. Restricting domestic gas for only cooking purpose is also a bold promise made, and would take some doing to inculcate the culture of thermal solar heaters. The Policy, however, remains muted bout elimination of power subsidy to tube wells and eliminating feedstock gas subsidy to the fertilizer sector.
The only slight disconnect with rationale lies where the PML-N manifesto talks about ‘gas-for’ all’ policy, which surely is not the right way to go, and experts have long argued against it. On gas imports, the priority appears slightly worrying, with pipeline gas imports on top priority, followed by LNG. In all essence, it should be the other way around. In a nutshell, the Energy Policy adopted by the PML-N appears good one but it will eventually come down to the political will, without which the on-paper strategy would remain a futile exercise.