Power Division team was represented by Federal Minister for Power Omar Ayub Khan and Secretary Irfan Ali while Nepra's team was led by Member Sindh Rafique Ahmed Sheikh. The ministry also expressed unwillingness to give information about update on the status of dispute with M/s Karkey, saying that it can be shared in an in-camera meeting.
The Senate Standing on Power, headed by Senator Fida Muhammad, wanted the government to consider the petition of 96.6 MW Reshma Power regarding its conversion into an IPP for a term of 10-15 years and purchase of power through LESCO for Kasur.
Senior Joint Secretary Power Division (Power Finance), Zargham Eshaq Khan informed the committee that different policies have been formulated and two RPPs - Reshma and 70 MW Gulf - opted for take-and-pay mechanism.
Senator Nauman Wazir said that Pakistan's main issue is absence of energy market, saying that the country has to create its energy market and wheeling mechanism like the neighbouring countries if it has to move forward in power sector.
Senator Dilawar Khan was of the view if a company invests billions of rupees, its issue should be resolved, questioning when 41 IPPs are getting capacity payment then why Reshma and Gulf are deprived of this facility.
On this, Secretary Power Division Irfan Ali stated that both Reshma and Gulf, which are furnace oil-fired plants, were established as RPPs for three years.
The representative of Reshma Power stated that they have applied with Nepra for wheeling for the last one year, adding that Nepra's rules were formulated in 2016 which are yet to be implemented. On this the secretary power said that CPPA-G has its own opinion on wheeling which should be implemented. He further stated that a report will be submitted after going through the petition of Reshma Power. He further stated that new Renewable Energy Policy is expected to be announced keeping in view 30 per cent share of renewable energy in total generation.
"As far as wheeling is concerned, CPPA-G has its own view but the ministry will bring some mechanism on this issue and nobody should manipulate the law in any way. However, we are not giving any commitment in Reshma's case. We will go through their petition and come up with fair and just dispensation," Irfan Ali added.
When the issue of 32 per cent profit by M/s Nishat Power came under discussion, Minister for Power Omar Ayub said that the case of nine IPPs including Nishat is in the court, adding that after the verdict from SC, the committee will be informed accordingly.
The CEO IESCO informed the committee that 5 MW Sanjwal Solar Power Plant submitted its application for wheeling formula with Nepra but it has not provided complete documents. He said the permission of connection will be allowed after the Power Purchase Agreement (PPA). The committee directed Nepra and concerned company to hold a meeting and resolve the issue.
Senator Waleed Iqbal got surprised and said that rules regarding wheeling were made in 2016 but they were never complied with in letter and spirit.
The secretary power was of view that there is sufficient production of electricity in the country but there are some transmission issues. He further said that market should be open as well as wheeling needs to be seen in the light of law.
The director K-Electric told the committee that time of use has been regularised for industrial consumers. The Nepra has yet to notify the tariff for domestic consumers and that 0.22 million electric meters have been installed.
The Nepra officials said that K-Electric had obtained stay order. K-Electric officials said that Nepra in 2016 had directed to Karachi Electric Limited Company that it would provide to its customers TOU meters/bills according to 5 KW and additional load; however, due to financial constraints, KE provided this facility only to its industrial customers.
Senator Nuaman Wazir Khattak said that Nepra and K-Electric should resolve their issues out of the court. The chairman committee said that both will be called in the next meeting to take stock of the situation.
The standing committee was further briefed that under Public Sector Development Programme, there are 122 schemes of worth Rs 297 million regarding a special federal developmental programme for electricity transmission in district Kohat. Regarding theses schemes, the National Accountability Bureau in September 2018 conducted an inquiry and had ordered to stop work on them, adding that a week ago, they were given permission to work while it will take five months to complete the schemes. On this, the committee chairman ordered to complete work on the schemes at the earliest.
Ahmed Noorani told the standing committee that distributions companies inducted 20,000 employees in 2015-16 on a one-year contractual basis. However, even after the passage of three years, services of these contractual employees have not been regularised yet. On this, the additional secretary power said that their services will be regularised on the basis of their performance.
Regarding recruitments in Pesco, Senator Fida Hussain said that for medical tests of intending candidates, such conditions have been set in tenders that only one company can qualify which is against the rules and regulations, adding that all companies be given a level playing field in this regard. On this, the committee was informed that transparency will be ensured in the process.
Winding up the issue, the minister stated whatever decision executive takes, its brunt will be borne by every consumer of electricity in Pakistan. He further said that multi-buyer and multi-seller market will be established in the power sector with complete transparency.
Among others , the committee meeting was attended by senators including Fida Muhammad, Waleed Iqbal, Nauman Wazir Khattak, Shammim Afridi, Muhammad Ali Khan Saif, Maula Bakhsh Chandio, Dilawar Khan and Sardar Muhammad Shafiq Tareen, Minister for Energy Omar Ayub, Secretary Energy, Member Nepra, Additional Secretary Power, Director K-Electric and other senior officials.
