Power crisis

There was a time when the government encouraged those who could afford to set up their own solar system. Initially, the solar panels were expensive but with time they turned relatively cheaper when imported from China. The pressure on the government power supply system reduced. But it didn’t suit the government and it made it mandatory for consumers, especially industries, to also use power supplied by the grid system to keep it functional.

To begin with, the government allowed Independent Power Producing Companies (IPPs) to set up power generation plants and sell electricity to the government. Wapda, a gigantic organisation, was split into various Electricity Distribution Companies, which were government owned and given the responsibility to distribute electricity in different cities. The DISCOs established by investing colossal funds to set up offices and appoint officers, starting from CEO to the lineman, with innumerable officials of different ranks in between began to manage them. In short, IPPs generated electricity and sold it to DISCOs, which distributed it among the public in various regions at per/unit rate. These outfits also collected the electricity bills.

Innumerable DISCOs under the supervision of the proverbial white elephant Wapda started tearing the consumers financially by high tariff. The executives and staff of the DISCOs earned their hefty salaries by selling electricity to the public.

When the public complained about the high electricity tariff, the government suggested they solar as a source of alternative energy supply at cheaper rates. The main expense being the initial cost of the system, the arrangement began to pay back soon after its installation. The original high cost of the system benefited in the form of much lower rates with passage of time. The arrangement was that extra units produced were purchased back by the government at Rs27/ unit.

The government being ultra-generous to the bureaucracy, judiciary and politicians by way of their salaries and benefits, couldn’t reconcile with the per unit relief of Rs27 to the private investors. It decided to reduce this rate from Rs27 to Rs10, which meant a reduction of more than 62 per cent. Why such a drastic reduction? The answer is simple: supply free electricity to bureaucrats, judiciary and politicians.

A recent audit report raised another story. It involved eight Discos IESCO, LESCO, HESCO, MEPCO, PESCO, QESCO, SEPCO, and TESCO in overbilling practices to the extent of Rs244 billion during FY2023-2024. These companies had to cover up their professional inefficiencies, line losses and theft. But out of the eight organisations, MEPCO topped the list by issuing bills worth Rs49.6 million to consumers who had already reported to their Maker, as the audit report pointed out.

When the prime minister feels the financial crunch at the national level, he orders for immediate privatisation of SOEs. The privatisation commission briefed the premier ‘…that the phased privatisation of selected institutions would be completed within the stipulated time frame as per the cabinet-approved programme and the denationalisation of all institutions....’

On the other hand, the sale of PIA’s Roosevelt Hotel in Manhattan has been delayed because the financial adviser looking after it resigned. The Privatisation Commission board will hire a new adviser to take on the job. Our financial matters pertaining to the public sector are in complete disarray only because the public sector manages matters entirely in an opposite manner to that of the private sector.

The writer is a freelance columnist based in Lahore. He can be reached at: pinecity@gmail.com