NTDC restructuring, sell-off plan reviewed
The Senate Standing Committee on Power, on Monday, examined the government's plan to divide National Transmission & Despatch Company (NTDC) into smaller units for enhanced efficiency and functionality.
The Senate Standing Committee on Power, chaired by Senator Mohsin Aziz, was convened at Parliament House. The meeting addressed a public petition filed by the General Secretary of the All Pakistan NTDC Engineering Association (APNEA) regarding the government's plans to wind up or trifurcate NTDC into smaller units. Explaining the restructuring plan, aimed at making NTDC more efficient, the Ministry of Power secretary explained that NTDC engineers will remain within the National Grid Company, overseeing internal operations, while project execution and energy infrastructure development will be managed by a separate government-approved company.
During the meeting, Senator Mohsin Aziz also questioned the benefits of previously separating WAPDA, noting that consumers had yet to see tangible improvements. The power ministry secretary responded that while challenges persist in transmission, it is not the sole issue. The committee members, concerned about electricity costs, urged WAPDA to brief them on its future direction.
The secretary also reported that discussions with five independent power producers (IPPs) had concluded, and operations were halted as of September 30. One IPP was transferred to government ownership and four shut down. Additionally, Bagasse, a sugarcane byproduct, was aligned with imported coal in pricing due to the absence of a notified price. A fixed rate of Rs4,000 per 100 units of Bagasse was introduced, eliminating dollar-indexation mechanisms. Aziz requested detailed updates on remaining projects at the next meeting.
Discussions also touched on the privatisation of electricity distribution companies (DISCOs) such as IESCO, FESCO, and GEPCO. While the secretary noted improvements in recovery rates and loss reductions, Aziz raised concerns about privatisation's broader impact on efficiency. The committee was informed that further steps depend on the financial advisor's analysis.
The committee also deliberated on CEO and management appointments in DISCOS. It was noted that no specific age limits exist for these positions. The secretary confirmed that existing boards had been informed of their tenure completion and that new boards are being appointed, with the committee recommending a one-month timeframe for these appointments. Aziz also called for a report on the removal of SEPCO's executive engineer due to corruption, with a detailed recommendation expected within 15 days.