In Islamabad, a parliamentary panel convened on Tuesday, and one of its keyrecommendations was to discourage any increase in power tariffs forconsumers using less than 200 units per month. The panel warned thatescalating electricity bills could potentially lead to civil disobedienceacross the country.
Chaired by Senator Saifullah Abro, the Senate Standing Committee on Powermet to address concerns over inflated electricity bills that had triggeredwidespread public protests. Committee members expressed frustration withwhat they described as the “confused and complex policies” of the PowerDivision concerning relief for domestic consumers.
The committee unanimously called for the unconditional removal of tariffincreases for those consuming less than 200 units per month, withoutapplying Clause 6 of the policy on a monthly basis.
During the meeting, the committee received a briefing from the PowerDivision. After discussing the issue of inflated bills, Senator Abroemphasized that the nation-wide crisis could only be resolved by revisitingthe agreements signed with independent power producers (IPPs). He stressedthe need to reevaluate estimated prices within the legal framework andensure greater oversight of IPP operations to prevent over-invoicing,misinformation, and fraud.
The committee also inquired about the basis for payments to IPPs,highlighting the importance of appointing qualified officers within thePower Division. Additionally, the committee expressed reservations aboutthe lack of a 10-year breakdown of payments made to IPPs.
The committee was informed about ongoing government negotiations with IPPsto reduce power tariffs, particularly with 34 IPPs that had signedcontracts during the previous government. These negotiations were part ofthe government’s commitment to meeting International Monetary Fund (IMF)conditions.
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Despite seeking clarification on the breakdown of installed capacity andcapacity payments, the Power Division officials were unable to providesatisfactory answers. The committee discussed the need for policies toaddress electricity theft and illegal connections, with thousands of casesalready registered and complaints lodged across the country.
Regarding the rebasing of the financial year 2022-23, the committee wasinformed about varying tariff increases for different categories ofconsumers, emphasizing the importance of drafting policies favoringvulnerable segments of society to avoid frequent tariff shocks.
The committee also discussed budgeted subsidies for the power sector infiscal year 2024, with a significant allocation for distribution companiesand K-Electric. They expressed concerns over the absence of the powersecretary and the K-Electric CEO and emphasized the importance ofaddressing relief for the poor in electricity bills. The committee chaircalled upon the National Electric Power Regulatory Authority (Nepra)chairman and members to attend the meeting to address the serious issue ofsoaring electricity bills.
