Load shedding woes: NAB says govt instructions being flouted

The National Accountability Bureau has observed that in spite of clear instructions by the interim government for supply of gas to the general public and efficient generation of power by companies, the government instructions are being flouted and violated.
Taking cognizance of excessive load shedding and suffering of the people, NAB Chairman Fasih Bukhari summoned representatives of all stakeholders, including the Ministries of Water and Power, Finance, Petroleum, FBR, NEPRA, Planning Commission, SSGCL and SNGPL.
During the meeting, it was observed that despite clear instructions by the interim government that the priority of supply of gas would start with the general public, followed by efficient power producing companies and lastly “Captive Power Generators”, the same were not being followed in letter and spirit.
Captive Power Generators are units that are provided gas at subsidized rates so that they can provide electricity to industries. However, some of the captive power generators are still being provided gas at subsidized rates, but are selling electricity back to the government at full rates. The NAB chief observed that this was an instance of corruption which is not possible without criminal negligence and connivance of government functionaries.
The meeting also observed that the government had clearly prioritised provision of subsidised gas to efficient Independent Power Producers (IPP). However, subsidised gas is still being provided to inefficient IPPs.
The NEPRA representative said that while NEPRA is responsible for fixing the tariff rates, governmental ministries issue the notification of these tariffs, which is frequently delayed, resulting in losses to the IPP as well as the public at large. The NEPRA official added that in some instances, line losses and loss due to theft of electricity ranged between 50 to 80% of the power being produced.
It was also brought to the notice of the participants that big land holders are provided electricity at a flat rate of Rs 8 per unit, which is resulting in enormous loss to the national exchequer According to a NAB statement, it was obvious during the course of the meeting that no single organ of the state was responsible for the mess that has been created in the power sector nor is there any integrated energy management policy. Following the meeting, the NAB chairman directed that the government orders must be followed in letter and spirit.
He said that gas should be provided in accordance with the laid down priorities, with the highest priority going to the public at large followed by efficient power producers. An enquiry will be conducted by NAB to decide whether the decision to provide electricity to tube wells at a flat rate had a criminal aspect or not, the chairman added. He said that the final date of clearing overdue electricity bills is April 19 and all debtors, including government organisations must clear their dues or face criminal proceedings.
Regulators were instructed to ensure that they perform their assigned role in accordance with the law, failing which NAB will proceed against individuals and organisations.
Henceforth NAB will monitor the functions of the entire power sector, including SSGCL and SNGPL, to ensure provision of gas to the public at large as well as maximum efficient power generation.