Senate panel orders forensic audit of IPPs

Directs NEPRA to present list of owners

ISLAMABAD:

The Senate Standing Committee on Cabinet put the National Electric Power Regulatory Authority (Nepra) under the microscope on Friday, demanding a forensic audit of Independent Power Producers (IPPs) and a detailed list of their owners raking in trillions from consumers without generating a single unit of electricity.

The parliamentary panel grilled Nepra over the controversial agreements with IPPs, who are accused of pocketing trillions from consumers annually without delivering adequate electricity.

The committee stressed the need for transparency and accountability amid growing calls and protests demanding the scrapping of IPP agreements as the nation reels under astronomical electricity bills.

In a presentation, the chairman of the Oil and Gas Regulatory Authority (OGRA) informed the committee that draft agreements with Attock Refinery Limited (ARL) and National Refinery Limited (NRL) have been finalised, involving an investment of $1.3 billion to upgrade their plants.

Additional agreements with PARCO and Cynergico, totalling around $1.4 billion, are also in the pipeline.

The OGRA chairman outlined the authority's responsibilities, which include determining the revenue requirements of natural gas utility companies such as SNGPL and SSGC, setting UFG benchmarks, formulating and enforcing regulations, and monitoring performance and service standards.

OGRA also oversees safety awareness campaigns in the sector.

OGRA has issued 202 licenses in the oil sector, including those for 5 refineries, 42 oil marketing companies, 3 oil storage companies, 2 pipeline companies, 80 lube blending/reclamation plants, and 70 lubricant marketing companies, the panel was told.

In the natural gas sector, OGRA has issued 43 licenses, encompassing 6 integrated licenses, 15 transmission licenses, 16 natural gas/RLNG sale agreements, and 6 flare gas sale licenses.

In the LPG sector, OGRA has issued 364 licenses, including 11 LPG producer company licenses, 320 LPG marketing companies, 22 auto-refuelling company licenses, and 8 LPG air mix plant licenses.

Additionally, 3 import terminal licenses have been granted. In the LNG sector, 2 regasification unit licenses have been issued and are operational.

The CNG sector boasts 920 operational CNG stations.

Over the past three years, OGRA has received 7,877 complaints, of which 6,205 have been resolved, providing a relief of Rs121.32 million to complainants.

An investment of Rs38 billion has been made in the oil logistics sector, enhancing the National Oil Supply Chain (NOSC) with newly commissioned oil storage facilities totalling 544,570 metric tons.

Furthermore, an investment of $4-5 billion has been made in the upgradation of refineries.

OGRA has agreed with Pakistan Refinery Limited (PRL) to upgrade its existing plant in Karachi for $1.8 billion, aimed at increasing local production.