The Senate Standing Committee on Power, chaired by Senator Mohsin Aziz, on Monday deliberated on a public petition filed by the General Secretary of the All-Pakistan NTDC Engineering Association (APNEA).
The petition addressed the government’s proposed steps to wind up or trifurcate the National Transmission and Despatch Company (NTDC) into smaller units.
The Secretary of the Ministry of Power briefed the Committee on the NTDC restructuring plan aimed at enhancing efficiency. He explained that NTDC engineers would remain with the National Grid Company to oversee internal operations, while project execution and energy infrastructure development would be managed by a separate government-approved entity.
During the meeting, Senator Mohsin Aziz questioned the benefits of separating WAPDA, noting that tangible improvements for consumers remain elusive.
The Secretary of the Ministry of Power acknowledged challenges, including the generation-transmission disconnect, and agreed that transmission is not the sole issue.
Committee members expressed concerns over high electricity costs and recommended a briefing from WAPDA on its future direction.
The Committee was informed that discussions with five Independent Power Producers (IPPs) had concluded, with operations ceasing as of September 30. One IPP was transferred to government ownership, while the remaining four were shut down.
Bagasse pricing was aligned with imported coal due to the absence of a notified price, and dollar-indexation mechanisms were eliminated. A fixed price of Rs 4,000 per 100 units of bagasse was set. Senator Aziz requested details on the remaining projects at the next meeting.
Senator Aziz raised concerns about the privatization of power entities and its impact on efficiency. The Secretary Power highlighted that better-performing companies, including IESCO, FESCO, and GEPCO, were slated for privatization, with improvements in recovery rates and loss reductions already noted. Further steps await a financial advisor’s analysis.
The Committee also reviewed CEO and management appointments in DISCOs, noting the absence of an age limit for these roles. The Secretary confirmed that existing boards were informed of their tenures’ conclusion and that new boards are being appointed, with a one-month time-frame recommended for these appointments.
Senator Aziz sought details on the removal of SEPCO’s Executive Engineer over corruption charges, requesting a comprehensive report within 15 days.
