Council of Common Interests: Proposals for equitable power distribution approved

PM directs federal, provincial govts to clear their electricity bills.


Sumera Khan November 09, 2012

ISLAMABAD:


The Council of Common Interests (CCI) approved on Thursday recommendations for equitable distribution of electricity among provinces.


In its tenth meeting held on Thursday, the council discussed the report of a committee constituted to highlight recommendations for equitable distribution of electricity in the country.

The meeting decided that the recommendations of the 10-member committee would be accepted in principle, and further decided to include the principal officer of the Ministry of Finance in the committee to work out the mechanics of implementation of the decision.

Recommendations

The committee recommended not changing the existing formula of electricity distribution between different distribution companies, which has been in practice since 2006. It, however, also recommended the Karachi Electric Supple Company (KESC) to use its idle capacity to reduce their import of 650MW of power from the National Grid by 300MW. Furthermore, provinces may contribute as investors in financing through a Special Purpose Vehicle (SPV)/Holding Company/ investment in Hydro Power Projects, the committee recommended.

Proposals and schemes prepared by the federal government for conversion of street lights to solar mode, distribution of CFLs and UPS charging on solar mode would be looked into for further action following a detailed study by the provinces, the committees report suggested.

It also suggested that an open access policy, Electricity Act draft and conservation of energy law would be presented before CCI for further processing.

Provincial Police Departments will designate one DSP with 40 staff members at the disposal of each DISCO (distribution company) for recovery of bills and for instituting theft cases, the report said.

The committee further recommended to the CCI that energy projects should be duly budgeted as a defined share in the provincial annual development programme.

CCI standing committee

During Thursday’s meeting, the CCI decided to constitute a standing committee, to be headed by secretary inter-provincial coordination division, with CCI joint secretary, federal law secretary and inter-provincial coordination of provincial government secretaries as its members. The committee would examine and scrutinise cases specified in the Federal Legislative List (Part II) to be placed before the CCI.

While debating the working and functioning of the National Electric and Power Regulatory Authority (Nepra), Prime Minister Raja Pervaiz Ashraf said that the authority should have in-house capabilities and expertise to determine the tariff for power plants.

“Determination of up front tariff is of national interest and would pave the way for investors to make investments in the power sector without wasting time,” the premier said.

Prime Minister Ashraf directed federal and provincial governments to clear their current electricity bills promptly and settle complaints about over-billing within a month.

Khyber-Pakhtunkhwa proposed that provinces may be given at least 40% representation in the management boards of all such institutions,  regulatory bodies and other entities falling within the purview of subjects and items of Federal Legislative List Part-II.  Secondly, CCI may also direct the concerned ministries to provide comprehensive data of all such institutions. The matter was deferred till the next meeting for further consideration.

PM’s remarks

Addressing the CCI meeting‚ Prime Minister Ashraf said with the collective wisdom of the federal and provincial governments‚ democracy was gaining strength.

The premier said the “government honors the decisions of the courts and appreciates the steps taken by all the institutions for strengthening democracy.”

He said the CCI in its last nine meetings considered 54 federal and provincial issues of vital importance, adding that most of its decisions had been implemented.

Published in The Express Tribune, November 9th, 2012.

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