ISLAMABAD         -          The National Assembly panel Monday approved budget proposal of Rs298.44 billion for the power sector for the FY2023-24. It was told by the Federal Minister for Power that the government has refused the IMF demand for hike in base electricity tariff. The NA Standing Committee on Energy (Power Division), which met under the chairmanship of Sardar Riaz Mazari, has asked the Power Division to work out a mechanism to bring loadshedding at micro level instead of shutting down entire feeders.

The Committee also asked the Ministry to submit a draft of changes to be brought into Electricity Act, 1910 to avert damages caused due to high tension transmission line passing over inhabited areas. The Committee approved the Public Sector Development Programme proposals of the Power Division for the year 2023- 24. The Committee approved 81 ongoing and 21 new PSDP proposals worth Rs 298.44b. The Committee was apprised that the foreign component would be Rs.176.58b whereas Rs.72.46b and Rs. 49.40b would be the local and GoP component, respectively.

The Committee was further apprised that Rs. 41.80b were being demanded for two 660MW coal fired power projects at Jamshoro, Rs.52.63 billion for 38 projects of distribution companies (Discos) projects whereas the rest of the money demanded would go for 62 projects of NTDC and a single project of PPIB. Federal Minister for Power Khurram Dastagir apprised the committee that due to addition of generation from Thar coal in the national grid, the country would face less loadshedding in the upcoming summer season.

He said that his ministry was working on proposals to encourage investment in solar energy at micro as well as macro levels. While briefing the committee, Minister of Power Khurram Dastagir said that the government refused the IMF demand for a hike in the base electricity tariff, however its demand for recovery of deferred FCAs has been accepted. Similarly, it has also been decided, that for the recovery of interest on Power Holding Company’s loans, surcharge will be levied on electricity consumers for four months. The Minister said that currently 1980MW electricity from Thar coal is being generated.

He informed that Thar Matiari transmission line to be made operational by April. Khuram Dastgir said that there are many governance problems in the power sector. It is imperative to improve the governance for the better performance of the power sector, he added.

To prevent electricity theft, the transmission system will be controlled through IT, he said. Khurram Dastgir said that Discos are not privatized, instead they will outsource the recovery of the feeders on which there are high line losses. To reduce the electricity tariff, theft must be stopped, the minister said and added that the burden of stolen units is being transferred to other consumers. Initially it has been decided that low recovery/high losses feeders of each Dico will be outsourced, he said. Advertisements for outsourcing five very low recovery/high losses feeders in each Disco have been issued, he added. Replying to the issue of loadshedding on feeders with less recovery, the Secretary Power Division informed the committee that preparation of PC-1 to bring the loadshedding at micro level was underway. He informed that due to non-payment of electricity bills the distribution companies were forced to shut down power supply to those feeders.

The government is working on the plan to cut off the electricity from the transformers on which the electricity is stolen. Khurram Dastagir said that the installation of prepaid meters for 160000 industrial consumers would be completed by the end of this year. By switching over the industrial consumers to prepaid meters electricity theft in the industrial sector will be stopped, he claimed. While discussing the question referred to the Committee regarding violation while lying high tension transmission line, the Committee asked ministry to work on amendments in the Electricity Act, 1910.

The mover apprised the Committee that various instances had been reported causing damage to human life, livestock and property due to high tension lines passing over inhabited areas. The mover also sought details of loss caused to life and property and compensation awarded in that regard. Secretary Power said that DISCOs and NTDC always comply with regulations while lying transmission lines however in the instance issue, provincial and local authorities fail to get the town planning regulations complied with. He said that proliferation of housing schemes without proper NOCs and safeguards was the major cause behind that.