Islamabad: The National Assembly’s Standing Committee on Energy (Power Division) convened today to address critical issues related to overbilling and the performance of Independent Power Producers (IPPs). The meeting was held at the Parliament House under the chairmanship of Mr. Muhammad Idrees, MNA, where pressing concerns about the energy sector were discussed, especially focusing on Karachi’s energy crisis.
According to National Assembly of Pakistan, the committee deliberated on several key issues including the disparate costs of electricity generation across the country, with a particular focus on Karachi where thermal resources lead to higher production costs. The Additional Secretary of the Ministry of Energy (Power Division) highlighted that despite these costs, the uniform tariff policy mandates equal pricing nationwide, supported by government subsidies to alleviate consumer burdens.
The session took a critical turn when the performance of Independent Power Producers came under scrutiny. The committee resolved to invite IPP representatives for a detailed briefing in their next meeting to address the inefficiencies and overbilling issues more thoroughly.
K-Electric’s CEO reported significant financial losses due to an increase in defaulters and operational challenges, despite a notable reduction in losses from 40% to 15% post-privatization and an addition of 2000 MW to the national grid. Meanwhile, the CEO of HESCO denied systemic overbilling within their jurisdiction, attributing issues to isolated incidents which are promptly rectified.
The meeting, attended by prominent members such as Dr. Tariq Fazal Chaudhary, Sheikh Aftab Ahmed, and other MNAs, reflected a unanimous concern over ensuring reliable and affordable energy services across Pakistan. The committee’s discussions also touched on the broader implications of financial and operational strategies of energy providers in the country’s efforts to stabilize the energy sector.
The committee’s proactive approach underlines the urgency of reforming Pakistan’s energy landscape to ensure equitable and efficient energy distribution. As the committee prepares for further discussions with IPPs, the focus remains firmly on enhancing the transparency and accountability of power providers to safeguard consumer interests and ensure sustainable energy practices.