National grid: Govt to increase KE quota

ISLAMABAD: Power Division said Thursday the Federal Government will sign three agreements with Karachi Electric (KE) and increase power quota to 2250 MW from national grid in one-year from existing over 1150 MW.

This was stated by senior officials of Power Division at a poorly attended meeting of Senate Standing Committee on Power, headed by Senator Saifullah Abro. Abro showed annoyance at the officials of Power Division for not giving respect to the recommendations and decisions of the Committee.

“Both sides have initialled the draft agreements and summary on Power Purchase Agreement Agency and agreements with KE has been circulated to the concerned Ministries. We will submit the summary to the competent forum for final decision as soon as comments of all stakeholders are received,” said Additional Secretary, Power Division Musaddiq Ahmed Khan.

He said both sides will sign the agreements after the approval of federal government. He; however, did not give any deadline for the approval of agreements despite the Chairman querying about the year of signing of the documents. “The approval of summary does not fall in my powers. Hang me if something is delayed which is within my powers,” Additional Secretary, replied to Chairman Committee who wanted a clear cut date of signing the agreements between the GOP and KE.

On a question raised by the Chairman Standing Committee as to why an amount of Rs 53 billion overdue against KE in 2008 has not been recovered by the Ministry despite instructions of the Committee, CFO, CPPA-G, Rehan Akhtar said that the issue of payables and receivables will be covered in the Arbitration Agreement (AA), Terms of Reference (ToRs) of which are being finalised by the Privatisation Commission.

Power Division finalises new draft PPA with KE along with disputes

The annoyed Chairman questioned if there is anything which the Power Division wants to do or has decided not to implement any recommendation by the Committee; and disallowed CFO, CPPA-G to give further arguments to support his earlier stance.

He was of the view that KE’s payables have reached Rs292 billion but the government is not paying any heed to recover this amount.

He suggested that government should pay Rs115 billion of KE and receive the remaining amount. He said Power Division should get at least Rs 53 billion pending since 2008, and directed the recovery of this amount within two weeks’ time.

The issue of removal of Chief Executive Officer (CEO), Hesco, Rehan Hameed also came under heated debate in the meeting.

Power Division officials stated that he has been removed for regularizing 550 employees of Hesco in violation of policy and court orders.

He also violated the code of conduct by distributing regularization orders at a public ceremony in the presence of an MPA who belongs to opposition party.

Chairman Standing Committee revealed that the ceremony was organised by Disco’s Union and also attended by 200 employees, who should also be ousted.

However, when he announced that he would be inviting the removed CEO along with the Board members to ascertain the facts his proposal was opposed by the Additional Secretary Power Division who was of the opinion that inviting the removed CEO in the Standing Committee would be an embarrassment for the government. Chairman did not digest the arguments of Power Division, saying that it was the prerogative of the Committee to invite anybody.

The Committee also deliberated over rehabilitation of de-licensed public sector power generation plants and improvements of all Gencos and recommendations regarding operating GENCO-I on LNG instead of furnace oil. The ELR expenditures made by Hesco and Sepco under development, maintenance and procurement of material heads from June 2008 to-date were also discussed.

The officials of Gencos shared their perspective TPS Jamshoro, Kotri, Guddu and reasons behind falling on the bottom of Economic Merit Order (EMO).

Sindh approves 236 jobs under ‘deceased quota’

The Committee directed official of CGGCL to prepare rehabilitation plan of closed Gencos and submit to Nepra for review of their tariffs.

Member Nepra, Rafique Ahmad Shaikh shared reasons for the closure of few Gencos and converting some Gencos to take and pay from take or pay mechanism. He also clarified that Nepra had granted licences and approved tariffs of 13 wind power project on a tariff between 3 Cents to 4.5 Cents per unit but these projects do not qualify in the new CTBCM.

Chairman Standing Committee tried to criticise Chairman Nepra, Tauseef H. Farooqi for allegedly misguiding the Committee on the availability of 600MW electricity from renewable sources but Member Nepra clarified that the remarks of Chairman Nepra were made in a different context.

Chairman Committee Standing Committee showed grave concern regarding delays, maintaining that in order to benefit fully, it was imperative that the power sector be revamped. Regarding the use of alternative energy sources in the country and the plan to assimilate generated power into the system, the Committee was informed that alternative energy sources entailed 4 to 5 percent of total generated power which has not yet been introduced into the system.

The Committee directed the Power Division to ensure that all obstacles are removed and alternative energy sources are utilised to the fullest in the country. It was asserted that this was the way in which the energy crisis in the country could be curtailed.

Taking up the case of illegal appointments the Committee discussed the case of CFO, HESCO, who within a period of five months spent a large amount of Rs 24 million as expenditure in the Board meetings of Hesco. The Committee stressed the need for strict measures and directed that the case be forwarded to FIA for further investigation.

Discussing ELR expenditures made by HESCO and SEPCO, the Committee expressed dissatisfaction with the submitted data and directed that all relevant data must be submitted to the Committee within a week.

Copyright Business Recorder, 2021