ISLAMABAD: The Minister for Power, Sardar Awais Ahmed Khan Leghari, asserted Thursday that pervasive inefficiencies within the power sector are a significant detriment to the economy, contributing to nearly half of its downturn.
Speaking at a news conference, Leghari emphasized the detrimental impact of incompetence within the electricity sector on the economy. “Rectifying the power sector could potentially alleviate the economic crisis,” he stated. Under the directives of the prime minister, Leghari reported that comprehensive assessments have been undertaken in the past two to three weeks. Final decisions regarding reforms in the power sector have been reached, with detailed plans set to be disclosed next week.
Efforts against electricity theft are ongoing, with Leghari reiterating a zero-tolerance policy. He warned that the cumulative losses of power distribution companies (DISCOs) could soar to Rs560 billion by June. He attributed a portion of these losses to inefficiencies among DISCO officers and employees.
Vowing strict action against electricity theft, Leghari warned of dismissals for those involved, regardless of their ranks. Approximately 20 percent of DISCO employees are involved in electricity theft and incompetence, Leghari added, highlighting the country could no longer afford this burden of losses.
He also pledged to combat overbilling, stating that the government would take action against offenders. Leghari disclosed that CEOs of DISCOs have been instructed to inspect every feeder and power line and remove ‘kundas’ by April 23, with strict consequences for non-compliance. Furthermore, he announced forthcoming decisions by the cabinet next week regarding the formation of new DISCO boards, emphasising their accountability.
In the context of solar energy, Leghari said that in the past 4 to 5 years, there has been a significant progress in solarisation.
In response to queries, Leghari disclosed that solar panels with a capacity of 6,800 megawatts were imported this year, with a trend towards off-grid usage. He also indicated plans for incentive packages to boost power demand during winter to meet capacity payment requirements.
He stressed the necessity of rationalising solar unit prices and urged an examination of the burden of capacity on the poor. “We must examine why the burden of capacity falls on the poor.”
Highlighting the need for the privatization of DISCOs, Leghari stated that it is not the business of the government to operate these companies.
He also revealed that most government-owned generation plants, except for Nandipur and Guddu, are currently inactive, despite Rs7.5 billion annually being paid to their employees.
Regarding energy sector finances, Leghari mentioned receivables of Rs1.9 trillion in electricity bills, with a significant portion going unpaid. Regarding circular debt, Leghari estimated it to be around Rs2.4 to Rs2.5 trillion, with Rs1.9 trillion as receivables.
“The burden of DISCOs’ receivables is increasing by Rs200 billion annually,” he highlighted. He expressed appreciation for the support of Interior Ministry and FIA in combating the power theft.