In Islamabad, a parliamentary panel convened on Tuesday, and one of its key recommendations was to discourage any increase in power tariffs for consumers using less than 200 units per month. The panel warned that escalating electricity bills could potentially lead to civil disobedience across the country.
Chaired by Senator Saifullah Abro, the Senate Standing Committee on Power met to address concerns over inflated electricity bills that had triggered widespread public protests. Committee members expressed frustration with what they described as the "confused and complex policies" of the Power Division concerning relief for domestic consumers.
The committee unanimously called for the unconditional removal of tariff increases for those consuming less than 200 units per month, without applying Clause 6 of the policy on a monthly basis.
During the meeting, the committee received a briefing from the Power Division. After discussing the issue of inflated bills, Senator Abro emphasized that the nation-wide crisis could only be resolved by revisiting the agreements signed with independent power producers (IPPs). He stressed the need to reevaluate estimated prices within the legal framework and ensure 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 the Power Division. Additionally, the committee expressed reservations about the lack of a 10-year breakdown of payments made to IPPs.
The committee was informed about ongoing government negotiations with IPPs to reduce power tariffs, particularly with 34 IPPs that had signed contracts during the previous government. These negotiations were part of the government's commitment to meeting International Monetary Fund (IMF) conditions.
Despite seeking clarification on the breakdown of installed capacity and capacity payments, the Power Division officials were unable to provide satisfactory answers. The committee discussed the need for policies to address electricity theft and illegal connections, with thousands of cases already registered and complaints lodged across the country.
Regarding the rebasing of the financial year 2022-23, the committee was informed about varying tariff increases for different categories of consumers, emphasizing the importance of drafting policies favoring vulnerable segments of society to avoid frequent tariff shocks.
The committee also discussed budgeted subsidies for the power sector in fiscal year 2024, with a significant allocation for distribution companies and K-Electric. They expressed concerns over the absence of the power secretary and the K-Electric CEO and emphasized the importance of addressing relief for the poor in electricity bills. The committee chair called upon the National Electric Power Regulatory Authority (Nepra) chairman and members to attend the meeting to address the serious issue of soaring electricity bills.