Prime Minister Raja Pervez Ashraf has said that the determination of up front tariff was of national interest which would pave the way for investors to make investments in the power sector without wasting time.
This was stated by the Prime Minister while chairing the 10th meeting of the Council of Common Interests (CCI) convened after the passage of 18th Amendment to the Constitution here Thursday.
The meeting also decided to constitute a Standing Committee of CCI which would be headed by Secretary, Inter-Provincial Coordination Division as Chairman with Joint Secretary CCI, Federal Law Secretary and Secretaries Inter-Provincial Coordination of Provincial Governments as its Members.
The Committee would examine and scrutinize the cases / issues enumerated in Federal Legislative List (Part II) which are to be placed before the CCI.
While debating the working and functioning of National Electric and Power Regulatory Authority (NEPRA), the Prime Minister said that NEPRA should have in house capability and expertise to determine up front tariff for Power Plant run on coal, wind, solar, bio-gas, gas, oil etc.
The tariff should be such that it should provide incentives and attract the investors.
The meeting was also informed that work on Draft Electricity Law needs to be expedited. The Prime Minister also directed Secretary Water & Power in her capacity as Secretary Cabinet Division to coordinate with NEPRA for working out a front tariff.
The meeting was informed that the governments of Punjab and Khyber Pakhtunkhwa have notified the police officials and other staff to help the distribution companies in the recovery of dues and check theft.
The issue of renaming of Ministry of Professional and Technical Training as Ministry of Education and Training was deferred for the next meeting of the CCI.
The meeting also discussed the report of the Committee constituted by the CCI for giving its recommendations for equitable distribution of electricity in the country.
The meeting was informed that the Committee held three meetings on 11th August, 15th August and 15th September, 2012 and has come up with the following recommendations:-
i. The existing formula of distribution of electricity between different distribution companies in practice since 2006 may not be changed.
ii. KESC will use its idle capacity to reduce their 650 MW import from National Grid by 300 MW.
iii. For financing / investment in Hydro Power Projects, where financing has not yet been committed by any source, the provinces may contribute as investor in financing through a SPV / Holding Company.
iv. The proposals and schemes prepared by federal government for conversion of street lights to solar mode, distribution of CFLs and UPS charging on solar mode will be looked into for further action after detailed study by the provinces.
v. Open access policy and draft Electricity Act and conservation of energy law will be presented before CCI for further processing.
vi. Provincial Police Departments will designate one DSP with 40 staff members at the disposal of each DISCO which can be deployed anywhere in the DISCO area for recovery of revenue / bills and for instituting theft cases. DISCOs will bear financial liability in this respect.
vii. Energy projects including generation and conservation, should be duly budgeted as a defined share in provincial annual development programme.
viii. Replacement of Incandescent Bulbs with CFLs / LEDs.
ix. Phasing out of manufacture and import of Incandescent Bulbs.
x. Gas fired geysers to be replaced by solar water heaters.
xi. Introduction of Micro-solar grids for upto 10 households through micro financing. After development of model, it will be shared with the provinces.
During the debate, the Prime Minister directed that Federal and Provincial Governments should clear their current electricity bills promptly. If any person or body has any complaints about over billing, it should be settled within a month, he added.
The meeting decided that the recommendations of the 10-member committee on equitable distribution of electricity be accepted in principle. The Council further decided to include Principal Officer, Ministry of Finance in the committee to work out the mechanics of implementation of the decision.
The meeting also debated the issue of provincial representation in federal entities. The government of Khyber Pakhtunkhwa proposed that:-
a. The provinces may be given at least 40% representation in the Management Boards of all such institutions, Regulatory Bodies and other entities falling within the purview of subjects and items of Federal Legislative List Part-II.
b. Council of Common Interests may also direct the concerned Ministries for providing comprehensive data of all such institutions including list of entities, laws applicable and governing such Bodies, composition and power of their Management Boards.
The matter was debated in the CCI and it was decided to defer the matter for consideration by the next meeting of CCI.
Another item on the Agenda of the meeting was approval of National Mineral Policy 2012. The matter was discussed in detail and approval of the Policy was given by the CCI subject to concurrence by Chief Minister Sindh.
The Council while discussing the progress made by the Council in implementation of its decisions, was informed that l in its nine meetings it had considered 54 issues from federal as well as provincial governments and most of the decisions taken, have been implemented.
Earlier the Prime Minister in his opening remarks said that the government honors the decisions of the courts and appreciates their role in strengthening institutions and democracy in the country.
The Prime Minister said the government was fully committed to its political and constitutional obligations and believes in strengthening of institutions in their own spheres. He said with the collective wisdom of federal as well as provincial governments democracy was gaining strength in the country.
Prime Minister Ashraf said the government was also committed to hold a free and fair general election so that people of Pakistan could exercise their free will to choose their government for next five years.
The Prime Minister said the Council in its nine meetings discussed and took decisions on vital matters of national importance. He said the Council of Common Interests, as an institution was an icon of federalism which has strengthened confidence of all federating units.
It also took up Council’s second annual report, required to be placed before both the houses of the Parliament under Article 153 (4) of the Constitution and approved the same. The report covers meeting of the CCI held on Feb 9, 2012 and August 27, 2012.
The Prime Minister said the Council would contribute through meaningful deliberations on national matters.
The meeting was attended by Chief Minister Punjab Mian Muhammad Shahbaz Sharif, Chief Minister Sindh Syed Qaim Ali Shah, Chief Minister Khyber Pakhtunkhwa Ameer Haider Khan Hoti and Chief Minister Balochistan Nawab Aslam Raeesani, Dr Arbab Alamgir Khan Minister for Communications, Mir Changez Khan Jamali Minister for Science & Technology, Mir Hazar Khan Bijarani Minister for Inter Provincial Coordination, Dr Abdul Hafeez Shaikh Minister for Finance, Syed Naveed Qamar Minister for Defence, Haji Ghulam Ahmad Bilour Minister for Railways, Sheikh Waqas Akram Minister for Education & Training, Secretaries Cabinet / Water & Power, Finance, Planning & Development, Education & Training, Law & Justice, Railways, Economic Affairs, Religious Affairs, Chairman IPO Pakistan, Chairman NEPRA, Chief Secretaries Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan and other senior officials.