ISLAMABAD: Prime Minister Shehbaz Sharif on Monday constituted a task force to oversee the implementation of structural reforms in the power sector amid continued consumer outcry over exorbitant electricity bills.
A notice issued by the Prime Minister’s Office states that a task force is being formed to reduce the financial burden on the energy sector borne by the government and enable the creation of an efficient, liquid and self-sustaining competitive energy market.
The development came as there were several protests – including a sit-in organized by Jamaat-e-Islami (JI) – against the high cost of electricity.
Pakistanis receive high electricity bills that also include capacity payments to Independent Power Producers (IPPs). Electricity producers receive capacity payments regardless of whether they produce electricity or not.
Energy Minister Awais Leghari has been appointed as the chairman of the task force, with Special Assistant to the Prime Minister for Power Muhammad Ali as co-chairman and Lt. Gen. (General) Muhammad Zafar Iqbal as the national coordinator.
BS-21 officer Syed Zakaria Ali Shah, nominees of National Electricity Regulatory Authority (Nepra), Central Power Purchasing Agency, Private Power and Infrastructure Board and Securities and Exchange Commission of Pakistan (SECP) are members of the task force.
The Task Force will co-opt any public/private sector expert, engage or seek records and information and/or assistance from local and/or international consulting firms, bankers, legal advisors, chartered accountants or any other organization. or individuals as it deems necessary.
Scope of the working group
Recommending measures to ensure the financial and operational sustainability of the energy sector.
Overseeing the development of an efficient and liquid electricity market design along with its implementation.
Recommending utilization of excess capacity by industry/SEZs to stimulate growth.
Reviewing and recommending measures to reduce capacity payments, including but not limited to shutting down certain power plants and taking any other necessary measures deemed appropriate.
To review matters relating to the cost of setting up various IPPs in the country and to identify malpractices, procedural deficiencies and legal loopholes with a view to recommending ways to remedy them;
Checking the IPP’s compliance with the parameters/conditions of various agreements signed with relevant government departments or institutions.
Recommendation of measures to solve the issue of Circular Debt Stock in the energy industry.
The task force’s role is not limited to fact-finding and should be fact-finding, and it should also be responsible for overseeing the implementation of its recommendations.
The notice said the task force should be given full support, including the necessary budget allocation by the government.
“Within one month of its establishment, the task force will submit its recommendations along with an implementation plan to the prime minister for consideration,” it added.
In addition, the Power Division should brief the task force and be supported by its Special Secretary – who will also head the Secretariat.
The task force will maintain effective coordination and consultation with the Ministry of Energy, she added.
Prime Minister’s Coordinator Rana Ihsaan Afzal said that the government wishes to provide 70% relief in electricity.
“However, wishing, demanding and acting on facts are different,” Afzal said during an appearance on Geo News’ program ‘Geo Pakistan’.
The coordinator said that fact-based discussion will benefit people, adding that there should be thought of moving to fact-based problem solving.
