- 25% of reconciled electrical contributions “can be deducted” at source.
- Leghari says that deductions would only apply to reconciled accounts.
- The Minister says that three private electricity distribution companies.
Islamabad: Heads of the power division informed the senators on Friday that the federal government plans to use the national financial commission (NFC) to deduct 161 billion rupees of unpaid energy bills for the actions of the four provinces.
The Common Interest Board (CCI) has already approved this plan, The news reported.
The disputed plan would dock 68 billion rupees from Sindh, 42 billion rupees from Punjab, 41 billion rupes from Balutchistan and 10 billion rupees from Khyber Pakhtunkhwa. It was examined during a meeting of the Senate Committee on the energy chaired by Senator Mohin Aziz. These contributions have been due to provincial services for almost three years.
According to officials, only Punjab has helped to reconcile contributions; The other provinces have been dragging their feet for over two years.
Federal Minister of Energy, Awais Leghari, said that 25% of reconciled electrical contributions could be deducted at source, after the ICC approval.
The remaining amount, he added, would be recovered later. Leghari said that deductions would only apply to reconciled accounts and said the case had been taken into account of the finance division.
On privatization, Leghari said that three electricity distribution companies – Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO) and Gujranwala Electric Power Company (GEPCO) – will be privatized in the first phase, with Lahore Electric Supply Company (Lesco) Multan Supply Company (MEPCO) and Hyderabad Supply Company.
The GUDDU and NANDIPUR power plants are also heading for privatization. Ensuring the senators, Leghari promised the protection of employees during the privatization transition.
The managers of the Privatization Commission informed the legislators that a financial advisor had been appointed for the first three public services and will submit its report by the end of May. Roadshows and investor briefings will follow, the complete transaction process should be concluded in the six months.
Meanwhile, the president of the National Electric Power Regulatory Authority (Nepra), Waseem Mukhtar, noted an RS7.41 per unit reduction of power prices due to fuel and quarterly adjustments. But Senator Aziz warned that relief could be short -lived. Mukhtar has echoed concern, citing the dropped hydroelectric production caused by weak snowfall and drying tanks.