ISLAMABAD – Reiterating government firm commitment to bring reforms inpower sector including indiscriminate action against power pilferers andrecovery from defaulters, Minister for Power Division Omar Ayub Khan onTuesday said circular debt would be brought down to Rs 225 billion fromexisting Rs 603 billion by December 31, 2019.
Talking to journalists here, the minister said the circular debt escalatedto Rs 450 in just one year due to delay in tariff determination, absence ofproper plan to stop power pilferage and power supply to high losses feeders.
He said the past government did not give attention to power sector recoverybesides continuous power supply to high losses feeders.He said owing to the efforts of incumbent government, power sector revenuewitnessed Rs.40 billion surge in last three months. Kunda culture wascompletely being eliminated with the support of public representatives andextensive drive against power theft, he said.
The minister said special anti power theft campaign has been launched ininterior Sindh, Khyber-Pakhtunkhwa and in FATA.He said over 20,000 First Investigation Reports (FIRs) have been lodgedagainst power pilferers besides arresting some 2000 accused so far. Acrossthe board action was being taken against power thieves, he added.
He said raids were also being conducted during night to curb menace ofpower theft. Some 450 officials of various distribution companies were alsoterminated involved in power theft, he said.Omar Ayub said Peshawar Electric Supply Company (PESCO), Quetta ElectricSupply Company (QESCO), Multan Electric Supply Company (MEPCO) and LahoreElectric Supply Company (LESCO) would be further bifurcated to bringimprovement in their performance.He said under investment plan in power distribution companies (DISCOs),length of transmission lines of various feeders would be reduced to 20-25kilometer which would not only help reduce lines losses but also end lowvoltage issue. The step would also help increase revenue, he said.
He said currently in efficient DISCOs, length of transmission lines werearound 20-25 km while in in-efficient companies its length stretched to 120Km.
The minister said the total installed capacity stood at 31000 MW and 60 percent electricity was being generated from imported fossil fuel, 30 per centhydel, 6 per cent nuclear and remaining 4 per cent from Renewable Energysources.
He said transmission line was also being upgraded adding that arrangementshave been finalized for Matiari-Lahore Transmission line. Ground breakingof the project was expected in next two months, he added.
Omar said there were total 840,000 power transformers in the country andtalks were held with World Bank for installing separate meters on everytransformer.He said it would not only identify exact power consumption but also reduceline losses besides improving revenue collection.
The minister said the past government did not determine power tariffcalculated by NEPRA due to general elections. The power regulator haddetermined Rs.3.86 per unit increase in the tariff but the incumbentgovernment passed only Rs.1.27 per unit to the consumers.
The past government also deliberately stopped to pass on quarterly capacityadjustment to the consumers resulting accumulation of Rs over 200 billionin six months.
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He said despite these grave issues, the government did not increase powertariff up to 300 units while nominal increase of 10-15 per cent was madefor those consuming more than 300 units.
Similarly, he said no increase was made for commercial consumers whiletariff for agri tube wells was slashed from Rs.10 to Rs.5.35 per unit.
Omar Ayub said new RE policy would be announced next month and 600 MW REwould be added to the system on fast track.He said under the new policy, RE share would be enhanced to 25 per cent oftotal energy mix by 2025 and 30 per cent by 2030.
The minister said 60 per cent of electricity would be generated fromindigenous resources including 30 per cent each from RE and hydel.He said 29000 tube wells in Balochistan was also being converted on solarbesides introducing Aerial Bundle Cables in areas of high losses to curbpower theft.
Omar Ayub said Energy Task Force has also finalizing Advanced MeteringInfrastructure (AMI) system to reduce line losses.He said the government has approved water charges for Azad Jammu andKashmir and steps were being taken to set up power Distribution Company.Rs. 1.10 would be paid to AJK government under the head of water charges,he said.
The minister said a sum of Rs 20 billion has also been paid to KPK undernet hydel profit and efforts were being made to clear past dues.Responding to a question, the minister said load-management would beobserved in areas of high losses in the coming summer season.
Speaking on the occasion, Chairman Energy Task Force Nadeem Babar said thepast government did not pass on tariff determined by NEPRA resultingaccumulation of Rs.226 billion. It would cost over Rs. 4 per unit increasein tariff if was passed on the consumers, he added.Secretary Power Division, Irfan Ali said merit order was never violated ingenerating electricity from various sources.
He said lists have already prepared to recover dues from big defaulters.
