ISLAMABAD: Power Division on Thursday failed to satisfy the Senate Standing Committee on Power about privatisation of power Distribution Companies (Discos) including fate of their employees who are also stakeholders.
Briefing the Committee, presided over by Senator Mohsin Aziz, a representative of Power Division said that privatisation of Discos is the domain of Privatisation Commission (PC), adding that the job of Power Division is to assess market conditions and extend cooperation to the PC.
In the first phase, three Discos, ie, Iesco, Fesco and Gepco are on the priority list and January 2025 is the deadline to complete prior actions for which process to hire Financial Advisors (FAs) is under process.
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Power Division further stated hiring of consultant with the support of local World Bank is also under process, who will assess the financial impact including retirement of Discos employees.
The Chairman Standing Committee expressed his displeasure at progress in Discos privatisation including timely resolution of fate of employees who are also the stakeholders.
“We take big decisions but employees Unions stand against those decisions, the process is halted because we do not consider them as stakeholders,” said Chairman Standing Committee, Senator Mohsin Aziz.
Briefing the Committee, KE’s Chief Distribution Officer, Sadia Dada noted that in FY24, the power utility company’s losses stood at 23.1 per cent, of which T&D losses were 15.3 per cent whereas remaining were Aggregate Technical & Commercial (AT&C) losses.
Currently, over 70 percent of KE’s service area is exempt from load shedding, including 100 percent exemption for industrial feeders.
She further stated that out of 2,100 feeders, 1,600 feeders are load management free. Those areas where losses are less than the allowed limit of Nepra, there is also no load shedding. However, in high loss areas load shedding is implemented as per the government policy.
As of FY24, KE has outstanding dues of over Rs 130 billion against HL and VHL feeders out of which around Rs 44 billion accumulated during FY 2024 only.
Chief Distribution Officer further stated that KE has added 1,957 MW electricity in the system, and generation fleet efficiency (gross) increased by 16 points - from 30 per cent in 2005 to 46 per cent in 2024. Number of grid stations increased by 22 to 74 in 2024 from 52 in 2005 at the time of privatisation.
Transmission capacity increased by 104 per cent, load-shed exempt areas increased by 163.4 percent - from 6.6 per cent to 70 per cent plus. Distribution capacity (MVs) improved by 131 per cent.
Power Division apprised the Committee that current uniform electricity tariff is applicable across the country including Karachi as difference of cost and sale is bridged through subsidy by the federal government.
Industrialists from Khyber Pakhtunkhwa including Hattar requested the government to form a Commission or Committee to alter procedures of electricity connections and highhandedness of Discos employees, especially those of Pesco.
Former President Sarhad Chamber of Commerce and Industry highlighted that Pesco officials creates unwanted hindrances to derail the process of solarization. As of now, approximately a period of 07 to 08 months required to acquire the necessary approval from the PESCO. There is dire need to amend the Pesco law as it works unilaterally and provides no breathing space for local consumers. One of the affected industrialist apprised that Pesco has cut the connection despite filing an extension application, which had been pending for more than three months.
Senator Mohsin Aziz lamented that it is unfortunate to witness such a treatment is being extended to industrialists who have been paying their bills and income tax. Senator Hidayatullah Khan opined that the Pesco law needs to be amended to lessen the burden of industrialists. The Committee directed the Power division to resolve the grievances of industrialists, as it would help in reviving the dying industry of Khyber Pakhtunkhwa.
The committee was miffed over the absence of Minister and Secretary of Power Division and stated that both officials should ensure their presence in the next meeting.
Senator Syed Masroor Ahsan expressed satisfaction with the K-Electric and stated that the matter has been resolved amicably. The Committee disposed of the matter stating that the figures revealed by K-Electric depicts quite an opposite image of K-Electric compared to the one showed by the media.
In attendance were Senators Syed Masroor Ahsan, Haji Hidayatullah Khan, Manzoor Ahmed Kakar, Special Secretary for Power Division Arshad Majeed Mohmand, Nepra Chairman Waseem Mukhtar and other senior officials from relevant Departments.
Copyright Business Recorder, 2024
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