Electricity policy

For any federation to work smoothly, it is significant that the interests of the federating units take preference over the desires of the central government. What we have been witnessing lately is the tendency of the government to make policies and take decisions that are not entirely the result of any consultations with the provinces. The new National Electricity Policy 2021 is yet another case in point. Since hydropower is a major source of energy in the country, naturally the concerned provinces do have their reservations when their voice is not heard or incorporated in any new strategy that deals with the power sector in the country. Not all provinces have similar potential for generating hydropower, and those with greater capacity have more concerns that deal with their resources. If the whole country benefits from the huge hydropower potential of a province, that federating unit does have a right to be heard.

According to reports, the draft policy is not people-friendly as it does not take into accounts the interests of all federating units. The draft National Electricity Policy 2021 has not been discussed publicly and the government in its unilateral style does not seem interested in giving the provinces a role in the power sector. This is in violation of Article 157 (1) of the constitution according to which it is mandatory for the federal government to consult the provincial government. If the new policy is approved, it is likely to empower the federal government to undertake a hydropower project without the approval of the province where it is located. After the 18th Amendment, provincial governments are accepted as major stakeholders in the power sector and they have a right to initiate projects in line with their priorities.

The federal government must refrain from unilaterally choosing strategic projects without taking the provinces into confidence. The new policy is also reported to aim at allowing the central government to build storage projects in the provinces without consulting them. It is true that the country needs expansion in its storage capacity but that should be done with the provinces on board. The same applies to the Indicative Generation Capacity Expansion Plan (IGCEP) whose formulation and implementation needs consensus. This plan contains a list of projects identified by the federal government on the basis of 27 indicators. Another element is the payment of net hydel profits (NHP) as share of the provinces where the power station is located. All these are serious issues and must be tackled in a harmonious manner.