PM constitutes task force for structural reforms in power sector

• Task force being formed to reduce financial burden. 
• Power Minister Awais Leghari appointed chairman. 
• Govt wishes to give 70% relief in electricity: Afzal.

ISLAMABAD: Prime Minister Shehbaz Sharif Monday constituted a task force oversee the implementation of structural reforms in the power sector amid the ongoing outcry by the consumers over exorbitant electricity bills. 

A notification issued by the Prime Minister's Office said that the task force is being formed to reduce the financial burden of the power sector being borne by the government and enable the establishment of an efficient, liquid, and self-sustaining competitive power market. 

The development came as there have been multiple protests — including a sit-in being staged by Jamaat-e-Islami (JI) — against the high cost of electricity.

Pakistanis have been receiving high electricity bills which also include capacity payments being made to the independent power producers (IPPs). The power producers are paid capacity payment regardless of whether they generate electricity or not.

Power Minister Awais Leghari has been appointed as the chairman of the task force, Special Assistant to Prime Minister on Power Muhammad Ali is the co-chairman while Lt (Gen) Muhammad Zafar Iqbal is the national coordinator. 

The members of the task force are BS-21 officer Syed Zakaria Ali Shah, nominees of National Electric Power Regulatory Authority (Nepra), Central Power Purchasing Agency, Private Power and Infrastructure Board and Securities and Exchange Commission of Pakistan (SECP). 

The task force will co-opt any expert from public/private sector, engage or seek record(s) and information and/or assistance from local and/or international consulting firms, bankers, legal advisors, chartered accountancy firms, or any other organisation or individual as deemed necessary. 

Terms of reference of task force 

• Recommending measures for making power sector financially and operationally sustainable. 
• Overseeing the development of an efficient and liquid power market design along with its implementation. 
• Recommending utilisation of excess capacity by industries/SEZs for stimulating growth.
• Reviewing and recommending measures to reduce capacity payments, including-but not limited to shutting down certain plants and taking any other necessary measures as deemed appropriate. 
• Reviewing matters pertaining to the set-up cost of various IPPs in the country and identifying malpractices, procedural weaknesses and regulatory gaps with I a view to recommend the way forward to rectify these; 
• Reviewing compliance of IPPs with-parameters/terms and conditions of various agreements signed with relevant government agencies or institutions. 
• Recommending measures to resolve the issue of Circular Debt Stock in energy sector. 

The task force's role shall not restricted to fact finding and it should to fact finding and it should also be responsible for overseeing the implementation of its recommendations.

The notification said the task force should be given full support including requisite budget allocation by the government. 

"Within one month of its establishment, the task force shall submit its recommendations along with an implementation plan for consideration of the prime minister," it added. 

Moreover, Power Division should notify the task force and it should be provided support by its special secretary — who shall also be the head of the secretariat. 

The task force shall maintain effective coordination and consultation with the Ministry of Energy, it added. 

Prime Minister's Coordinator Rana Ihsaan Afzal said that the government wishes to give 70% relief in electricity. 

"However, wishing, demanding, and acting on facts are different," said Afzal while speaking during Geo News programme "Geo Pakistan". 

The coordinator said that a discussion based on facts will be beneficial for the people, adding that one should think about moving towards fact-based solutions to problems.