PPIB-AEDB merger to take time: ''Controversial'' bill approved by Senate panel

The Senate Standing Committee on Energy Thursday approved the much-awaited Regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Bill, 2017, aimed at clipping the wings of Nepra but deferred the bill merging Private Power and Infrastructure Board (PPIB) and Alternate Energy Development Board (AEDB).
Presided over by Senator Israrullah Khan Zerhri, the committee held two sessions. First session of the meeting focused on issues related to the Petroleum Division whereas the second session discussed Power Division''s matters. Petroleum Division''s team was represented by Secretary Petroleum, Sikandar Sultan Raja whereas Minister for Power Division Awais Ahmad Khan Leghari and Secretary Power Division Yousuf Naseem Khokhar headed their team. Joint Secretary (Power Finance) Zargham Eshaq Khan presented a comparison of proposed amendments and the Power Division''s viewpoint.
No one from National Electric Power Regulatory Authority (Nepra) which maintains that the new amendments would compromise its independence attended the meeting of the Senate Standing Committee to present its viewpoint. Secretary Power Division argued that the performance of AEDB was not in accordance with the objectives/rationale for which it was established.
The committee did not approve six amendments submitted by Senator Salim Mandviwalla and a few by Senator Mohsin Aziz with respect to "the Regulation of Generation, Transmission and Distribution of Electric Power (amendment) Bill 2017". The National Assembly Standing Committee on Energy has already approved the Nepra Act amendment Bill according to which the age of member of Nepra has been fixed at 62 years with minimum experience of 10 years. Senator Mohsin Aziz suggested the age limit for Members should be increased to 65 years whereas minimum experience should be 15 years.
After detailed arguments from Awais Leghari and Yousuf Naseem Khokhar, the committee members approved the Bill unanimously. The process to merge the two organisations will take five years as immediate changes in the structure would create problems, the committee was informed. The Minister argued that Power Division is the administrative Division of AEDB and represents the organization. However, he appeared angry when told that CEO AEDB has approached the committee secretariat requesting that the organisation be given a hearing in the committee, saying the CEO should not have approached the committee directly.
Senator Mohsin Aziz criticised the government for establishing wind energy projects three times more expensive compared to other countries. The Minister said that those projects were approved when the country''s power sector was in Intensive Care Unit (ICU) but now the government has disbanded upfront tariff and decided to accept only International Competitive Bidding (ICB) based tariff.
Secretary Power Division assured the committee that renewable energy sector would be an important part of the new Energy Policy, adding that after reaching a comfort level, the government has to see how the basket price can be brought down. The Minister said that the government has already started work on National Energy Policy and requested the Senators to urge their respective Chief Ministers to send senior officials to the meeting instead of junior officials so that provinces could give their viewpoint in drafting the policy.
Secretary Power Division revealed that the government has decided to stop implementation of obligations in the pipeline in accordance with the directions of Cabinet Committee on Energy (CCoE) in its recent meeting.
The minister stated that the government has rejected 6 cents tariff for solar projects and preferred to go for competitive bidding. He was of the view that renewable energy is the future of Pakistan. In the first session, the committee was informed about PSDP projects of Petroleum Division for 2018-21. Director General Geological Survey of Pakistan (GSP) informed the committee that 10 development projects have been proposed with a cost of Rs 650 million. He further stated that six projects have been proposed for minerals and four projects for oil exploration.
The chairman standing committee said that there is no example of loot and plunder in Saindak Copper Gold project. He said helicopters directly land at the project site. He further stated there is also high-level mismanagement in coal extraction in Balochistan.
The committee was informed that a project of mineral exploration has been proposed for Uthal and Baila at a cost of Rs 569 million. The committee was informed that LGP air mix plants will be established in Khuzdar and Musakhel after land is allocated through the DC. The meeting was attended by Senator Baz Muhammad Khan, Senator Mir Yousaf, Senator Taj Afridi, Senator Azam Khan Musakhel, Senator M Hamza and Senator Mohsin Aziz.