Prime Minister Raja Pervez Ashraf has said that the determination of upfront tariff was of national interest and 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 on Thursday. The meeting also decided to constitute a standing committee of the CCI, which would be headed by the inter-provincial coordination secretary as its chairman, with the CCI joint secretary, law secretary and secretaries of inter-provincial coordination ministries of provincial governments as members. The committee would examine and scrutinize the cases 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 NEPRA should have in-house capability and expertise to determine up front tariff for power plants run on coal, wind, solar, bio-gas, gas, oil etc.
The tariff should be such that it should provide incentives and attract investors. The meeting was also informed that work on Draft Electricity Law needed to be expedited. The prime minister also directed the water and power secretary in her capacity as Cabinet Division secretary to coordinate with NEPRA for working out tariff. The meeting was informed that the governments of Punjab and Khyber Pakhtunkhwa had notified police officials and other staff to help distribution companies recover dues and check theft.
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 August 11, August 15 and September 15 and had 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 650MW 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’s 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 up to 10 households through micro financing. After development of model, it will be shared with the provinces.
