No plan yet to take over KE: SAPM

Says govt may consider proposal if performance of power supply company does not improve

KARACHI:

Special Assistant to the Prime Minister on Power (SAPM) Tabish Gauhar on Wednesday declared that the government was yet to take a decision regarding taking up of the administrative control of the K-Electric (KE).

“The government may consider the proposal if the performance of the power supply company (KE) does not improve and Shanghai Electric does not come and invest in it,” he said.

The SAPM was speaking to media after addressing an event titled “The Futures Summit” in Karachi.

Highlighting the efforts of the government, Gohar said the incumbent regime was taking up measures to break the monopoly of power distribution companies across the country.

The distribution setup of all power companies will be the same as that of K-Electric, he said, adding that the problem of K-Electric was that Shanghai Electric was not coming with its investment in Pakistan.

“With the intervention of the Supreme Court, however, this matter will now be fixed and there will be uniform tariffs across the country,” he said.

The SAPM urged K-Electric to obtain 2,000 megawatts of electricity from the national grid rather than producing expensive power for its consumers.

Commenting on the financial aspects of energy supply, the PM’s aide noted that Rs125 billion was being paid on the Rs2300 billion circular debt in the form of interest, the burden of which was shifted to the people. He said the government was trying to curtail the rise in circular debt.

Responding to a question, Gohar maintained that users who consumed more electricity were entitled to relief adding that the power companies in the country had their own plants.

“The government had decided to prevent power theft in Karachi through load shedding and the tradition extends to all over the country,” he said.

“Several transmission lines of power companies do not have electricity, which is why there is a need to lay new wires,” he added. “Karachi would get 900MW before next summer.”

Earlier, while addressing the summit, the SAPM said the setting up of a separate 1,000MW plant was in consideration for the KE and that work was being done to increase the total power generation capacity to 3,200MW.

The PM’s aide declared that tariffs and discounts were being given to industrial and commercial consumers while packages were offered to small businesses and industrial and export consumers.

“Decisions regarding uniformity in price of electricity would be taken in the next two days.”

The cabinet had also proposed to bring new distribution companies in the market under public-private partnership, Gohar said, adding that Engro was planning to establish a methyl plant in this regard while the issue was also being contemplated by the federal government.

The special assistant reassured that the federal government was trying to strengthen Nepra and Ogra.

“In the next three years, the consumers will have the choice of which company they want to buy power from as different companies will be allowed to supply power,” he said.

The summit was told that Rs700 billion had been earmarked for special energy sectors and that China was keen to invest in field of power generation.

Gohar stated that the government was formulating a policy wherein the burden of losses borne by the company would not be shifted to the consumers and will be the sole responsibility of the power producing entity.