ISLAMABAD: The National Assembly Standing Committee on Power Wednesday deferred approval of two amendments in existing laws meant to empower federal Cabinet to impose surcharges on consumers to recover losses and make electricity theft a cognizable offence, after open opposition by a majority of Treasury and opposition members.
Presided over by Chaudhry Salik Hussain, the committee discussed proposed amendments in both bills for two hours but the outcome of the meeting was a deferral and members, including the Chief Whip of PTI, made it clear that the Power Division would not be allowed to impose surcharges without any justification. Chairman of the Standing Committee maintained that the government should unveil the reasons for the imposition of surcharges.
Supporting further amendment in the Penal Code to make electricity theft a cognizable offence, Secretary Power, Ali Raza Bhutta informed the committee that annual impact of power theft has been calculated at Rs 45 billion. He acknowledged that in most cases Discos employees’ connivance was a key element in the failure to control power theft. He further maintained that an officer of not less than BPS 17 would be able to file an FIR in the police station along with proof, after which the accused will be arrested and presented before the judge.
Shazia Marri, MNA opposed arrest of any accused, saying that since the Power Division is acknowledging that Discos employees connive with consumers in electricity stealing, then why should only consumers be arrested. She argued that Discos should improve their performance so that consumers cannot get involved in such illegal practices.
However, Secretary Power Division pointed out that hooks’ installers can also be found in the market.
Additional Secretary Finance Division, Kamran Afzal supported the proposal of Power Division, saying that the impact of electricity theft is borne by the Finance Ministry which imposes taxes across the board to bridge the gap. “The impact of electricity theft is passed on to the general public,” he added.
Riaz Pirzada, MNA suggested that the proposed amendments should be altered in a way that anyone stealing electricity should be penalized on the spot like Motorway Police, adding that sending cases to the courts would further burden the courts and the fate of the cases would be decided in years.
“Power stealers should be issued tickets for immediate payment of a fine which is the best way to recover the money,” he maintained.
Members of PTI wanted to pass the amendments on an urgent basis, but the Chairman deferred the amendments and asked the members to send their suggestion in writing so that the bill may be approved in the next meeting.
Sher Akbar Khan, MNA said that electricity theft is a fact, urging the Chairman of the Committee to approve the amendment.
The Standing Committee also deferred approval of amendment to Regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Act, 2020 as the officials of Power Division and Finance Division failed to convince the committee about the financial impact of surcharges and their coverage categories.
Chairman Standing Committee observed that Power Division has not submitted statement of objectives and reasons which are necessary for amendments in the law.
Additional Secretary Power Division/ acting CEO CPPA-G informed the committee that recoveries are not 100 per cent as envisaged by the Nepra in its tariff determinations with IPP payables over Rs 1 trillion.
He said, increase in power rates for 25 million consumers for any government is very difficult which is why the government imposes surcharge on specific groups of consumers to bridge the gap between recovery and billing.
CFO, CPPA-G, Rehan Akhtar informed the committee that presently surcharge of Paisa 43 per unit is being recovered from consumers.
The Chairman questioned the tariff rationalization surcharge and its impact on circular debt, adding that surcharges should be instrumental in decreasing circular debt instead of raising it adding that surcharges increase the burden on general consumers.
Power Division officials, who could not satisfy the committee on the benefits of surcharges, stated that tariff rationalisation surcharge will be imposed to vacate circular debt.
Chief Whip, PTI, Amir Dogar stated that the system is not being upgraded and instead ‘bombs’ are being dropped on the consumers. “Give an injection of poison to the masses once, rather then again and again,” he said, adding that the government would not allow any surcharge without appropriate rationale,” he continued.
Dogar said he raised the issue of Neelum Jhelum surcharge during the PML (N) government which is still being collected from consumers despite the fact that the project is running at full capacity. The committee was informed that the federal cabinet will decide about the amount of surcharge.
Additional Secretary Power informed the committee that circular debt plan is being given final touches and in this regard negotiations with the IMF are in progress.
Additional Secretary Finance informed the committee that the government is working on a plan to eliminate circular debt.
Copyright Business Recorder, 2020
Comments
Comments are closed.