Smaller provinces bearing brunt of power theft: Shah

ISLAMABAD: The Ministry of Energy Tuesday admitted before the Public Accounts Committee (PAC) that Balochistan was facing long hours loadshedding despite that the country had 2,000MW surplus power.

The committee met here with Chairman Syed Khursheed Shah in the chair.

The meeting examined the audit paras relating to the Ministry of Energy (Power Division) for 2016-17.

Expressing displeasure over loadshedding in the smaller provinces, Khursheed Shah asked if the country had surplus 2,000MW electricity then why discrimination was being meted out to the smaller provinces.

He said Sindh and Khyber Pakhtunkhwa were also facing the same situation.

Khursheed major power theft was committed in Lahore and Faisalabad while the burden was passed on to the smaller provinces.

He asked for a separate briefing on January 31 for the committee on the line losses compared with the total units of electricity.

Chairman Nepra told the committee that there was no loadshedding in the country at the moment, as additional 2,000MW power was being generated. The committee was told that the power demand was 13,000MW while generation was 15,000MW.

However, Syed Naveed Qamar challenged the claim of Nepra chairman and said loadshedding was being carried out in the three smaller provinces except Punjab.

The Nepra chairman said though surplus power was available, the distribution companies (Discos) carried out loadshedding due to line losses in their areas.

“This means the claim of ending loadshedding in the country is wrong,” quipped Khursheed Shah.

The Ministry of Energy (Power Division) admitted that there were some areas where loadshedding was being carried out.

The committee was told that surplus power was available and the distribution companies were being supplied power through the national grid according to their needs but they were carrying out loadshedding in those areas where line losses were more than the allowed limit. The officials of the Ministry Energy (Power Division) told the committee that at the movement power generation was about 15,000MW while the demand was 13,000 MW.

To a query, the committee was told that the Nepra had allowed 15.25 percent line losses, including 13 percent technical line losses and 2 percent for the law and order situation, but these were 17.95 percent.

The committee was told that except Punjab, line losses were higher in other areas due to the law and order situation.

It was told that if the line losses limit crossed the allowed limit then it was because of power theft.

Giving the details of lines losses of different distribution companies, the committee was told that Lesco was facing 13.94 percent line losses against the allowed limit of 11.85 percent, Gapco was facing 10.8 percent line losses against the allowed limit of 9.9 percent, Pesco was allowed 26 percent line losses but the actual line losses were 33 percent, and Hesco was allowed 20 percent line losses but the actual lines were more than 26 percent. Khursheed remarked that smaller provinces were being punished for technical line losses, as the country had additional 2,000MW power but it was not being provided to the smaller provinces.

The officials admitted that 12-hour loadshedding was being carried out in Balochistan, as there was the major problem of distribution lines in the province.

Khursheed asked the Power Division officials why discrimination was being meted out to Balochistan.

The committee was told that hydel power generation was about 700MW to 900MW and the supply mainly came from Tarbella Dam, while Mangla Dam was not generating power. Power generation from Nandipur Power Plant stands at 517MW.

Examining the audit para, auditors revealed that Wapda had purchased power at an expensive rate due to which the national exchequer suffered a loss of Rs5.47 billion.

The committee was told that the Japan Power Generation Company had entered into an agreement with Wapda for which Nepra granted a licence for 16 years. The company was to generate power from furnace oil but it did not supply power, forcing Wapda to purchase expensive electricity causing a loss of R 5.47 billion to the national exchequer.

The Cabinet Division officials told the committee that the Japanese company was asked to reduce its tariff.

Expressing annoyance, Khursheed said the highest forum of the PAC was being misguided and asked who was responsible for the failure of this project. The Cabinet Division officials told the committee that ex-chairman Lt. Gen. (R) Zulfiqar Ali Khan was the then chairman Wapda.

The chairman asked which of the two — the current chairman Wapda or the secretary — will meet the losses.