Power Division
Senators criticized the power division and its subsidiary companies during a meeting of the Senate Standing Committee on Power chaired by Senator Saifullah Abro on Tuesday.
They proposed implementing a one-slab benefit for all residential users, emphasizing the protection of those consuming less than 200 units monthly from tariff hikes, even if their consumption exceeds the threshold for a month or so.
The panel members also called for a re-evaluation of tariffs set with independent power producers (IPPs), citing unfavorable agreements that allowed IPPs to benefit significantly from the rupee’s depreciation.
During the meeting, power division representatives pointed out that the Ministry of Finance had been in discussions with the International Monetary Fund (IMF) regarding potential relief for consumers.
Senator Behramand Tangi asserted, “Don’t try to blame the IMF. The IMF is not stopping you from reducing theft and losses. Employees of power companies engage in corruption, and there is no one to check their activities.”
The power division team, consisting of additional secretaries Arshad Majeed and Zaffar Abbas and Joint Secretary Mehfooz Bhatti, provided this information during the meeting.
Senators Challenge Tariff Structure and Demand Transparency
Senator Abro insisted that the only way to address the prevailing unrest and a situation resembling civil disobedience was to make efforts to thoroughly review the agreements with IPPs and re-evaluate tariffs in accordance with the legal framework.
He emphasized that IPPs should not operate independently without oversight, as it could lead to over-invoicing. He also called for a comprehensive examination of the entire infrastructure based on clauses related to misinformation and fraud.
The senators noted that independent power producers were at the heart of the ongoing power crisis, which is why power division officials should have quick access to their data and address their issues.
The committee members asserted that appointing qualified officers in the power division was necessary for providing relief to the people of Pakistan. The Senate panel also inquired about the breakdown of the 44,943-megawatt installed capacity and questioned why a maximum of 26,000 MW could be utilized.
However, the power division officials failed to satisfy the committee when they stated that the installed capacity must always be double the maximum capacity.
The senators were informed that the 2022-23 tariff adjustments did not affect 63.5 percent of domestic consumers. However, 31.6 percent of consumers experienced a spike of Rs3 to Rs6.5 per unit, and only 4.9 percent saw a hike of Rs7.5 per unit.
The committee expressed frustration with the power division’s convoluted policies and called for more transparent and user-friendly initiatives, especially for the vulnerable population.
