Govt wants to see more power companies in Karachi

Says it will create competition, end monopoly enjoyed by K-Electric

ISLAMABAD: The federal government has expressed its desire to see more power distribution companies in Karachi, in a bid to foster competition and end the monopoly enjoyed by K-Electric in the country’s largest city.

Secretary water and power Younis Dagha said this during a Senate Standing Committee meeting, adding that the centre had asked K-Electric for zero load-shedding in Ramazan, which starts in a few days.

“The permission for other power distribution companies to work in Karachi will help create an atmosphere of competition leading to better customer service,” Dagha said, adding that the transmission system in the provincial capital was not capable enough to meet the growing needs of the city.



“There’s zero load-shedding for industrial consumers right now and they could see some of it in Ramazan so that domestic users can have uninterrupted power.”

He was told that a new policy was in the offing that will allow the provinces to establish their own electricity regulatory bodies and abolish power generation licences.

“But what we want to ensure that there has to be some quality standard mechanism to be followed at all levels,” added Dagha.

The Senate Standing Committee on Water and Power was informed that a power shutdown would be observed for the industries as special arrangements were being made to ensure uninterrupted electricity supply for domestic consumers during Sehr, Iftaar and Taraweeh prayers.

The committee, chaired by Senator Sardar Muhammad Yaqoob Khan, was informed by officials that there will be load-shedding of around eight-and-a-half hours daily for the industrial sector.

“The first priority is the urban domestic consumers followed by the rural domestic consumers,” said Dagha. Meanwhile, the official added that not only had domestic consumption increased significantly, but mosques too, were equipped with air conditioners taking demand higher during Taraweeh.

“Besides, we all can see the weather conditions nowadays. The demand and supply gap was still very high.”

The committee was informed that in the current month average electricity generation in the country has been 16,280MW while demand has shot up to 20,500MW.

Members decried prolonged load-shedding in rural areas, which officials said would end by June 2018, as the current installed capacity of around 20,000MW would be raised to 31,000MW.  The increase includes addition of 630MW and 200MW from wind and solar generation by the end of December 2016.

On a separate topic, Senator Taj Haider inquired why the government was not abolishing generation licences and allowing the private sector, including provinces, to establish their own power plants for localised consumption.

“Besides, it will end the monopoly enjoyed by some power sector companies like K-Electric in Karachi.”

The committee discussed several issues including circular debt, as the officials said that it had been capped.



The National Energy Efficiency and Conservation Bill 2016 was also presented to the committee, which was approved by the federal cabinet in 2009 and has been approved by the National Assembly as well.

The bill deals with Enercon and establishment of its Board, but Senator Noman Wazir pointed out that there were several flaws in the bill.

“The real stake holders including electronic items manufacturers, Engineering Development Board, Pakistan Standards and Quality Control Authority etc should be part of the Enercon Board,” he added.

Published in The Express Tribune, May 31^st, 2016.

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