ISLAMABAD: Chairman National Electric Power Regulatory Authority (Nepra) Tauseef H Farooqi has urged the Cabinet Division to initiate process for appointment of new boss of the power regulator by May 6, 2023, 90 days prior to the expiration of his term.
In a letter to Secretary Cabinet Division, Aamir Ashraf Khawaja, Chairman Nepra has reminded that pursuant to the proviso of section 3(5) of the Nepra (Amendment) Act 2021, the process of appointing the Chairman under section 3 (2) may be finalized 90 days prior to retirement of the incumbent Chairman.
Farooqi has mentioned his efforts and initiatives to improve and modernize the country’s power sector performance which currently stands at close Rs 3,500 billion per year.
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“As Chairman, I took a number of initiatives to transition Nepra from passive to active and on course to becoming a proactive power regulator that it should have been from its inception,” he said.
According to him, several initiatives were taken to further Nepra’s mandate of regulating the entire power sector for making it an affordable, reliable and sustainable sector whilst keeping a fine balancing between consumers’ and investors’ interests.
Chairman Nepra has summarized some of the initiatives he took along with the help of Authority Members and professionals. They are as follows; (i) Nepra-Government relations; (ii) advisory on different government policy initiatives; (iii) sector cohesion; (iv) enactment of IGCEP in Pakistan; (v) launch of CTBCM; (vi) Market Operation and System Operator licences; (vii) hydro into renewable energy; (viii) reduction in renewable energy tariff; (ix) IPPs tariff renegotiation that will result in a saving of Rs 870 billion over the next 20 years; (x) Economic Merit Order (EMO); (xi) Provincial Grid Companies; (xii) loss reduction and recovery of Discos; (xiii) online performance reporting of licencees; (xiv) establishment of Nepra’s Regional Offices and Complaint Redressal; (xv) 600-MW of solar power; (xvi) industrial support and winter package; (xv) subsidies reform program; (xvi) modern initiatives for enhanced electricity reach; (xvii) training and development of human resources; (xviii) Regulator-industry linkages; (xix) meeting future leaders of Pakistan; (xx) timely completion and submission of state of industry and annual reports; (xxi) power with prosperity drive; (xxii) power with safety drive; (xxiii) power with security drive; (xxiv) power with utility drive, and (xxv) power with equality drive.
Chairman Nepra; however, was of the view that it is unfortunate that despite all initiatives and efforts, the ultimate goal of reducing energy poverty in the country couldn’t be achieved to the desired level due to skyrocketed fuel prices in the international markets owing to geopolitical situation.
“As we know that over 60 percent of Pakistan’s power sector comes from thermal generation, it is primarily based on imported fuel. The situation was further aggravated by the severe devaluation of Rupee against US dollar,” he said, adding that this was due not only to the country’s dependence on imported fuel but also to the mounting generation, transmission and distribution costs, as result of these contracts having substantial foreign portions along with local indexation.
Chairman Nepra has urged on Secretary Cabinet Division to finalize the process of hiring the Chairman with the stipulated time and select the best leader for power regulator, considering the complexity and sheer magnitude of social and financial impact of Nepra, to steer the power sector in the right direction.
Insiders claim that the incumbent Chairman will also use all his abilities to get the Chairman’s slot again but his opponents within the organisation and policymakers who are annoyed him will use their clout for appointment of another person.
Insiders have cited the example of former Chairman Wapda. General Muzammil Hussain (retired) who had also written a similar letter to then Prime Minister for select of a competent person for the slot but at the same he lobbied for his own appointment and succeeded.
Copyright Business Recorder, 2023