Circular debt: IPPs slashed output after receiving Rs480b
Senate panel grills government for making payments to plants violating agreement to boost power generation.
Senate panel grills government for making payments to plants violating agreement to boost power generation. PHOTO: FILE
ISLAMABAD:
A Senate panel grilled the government on Wednesday about paying Rs480 billion to independent power plants (IPPs) which have violated their agreements by slashing power generation.
The revelation that the IPPs were paid despite reneging on the agreement to enhance generation came during a meeting of the Senate Standing Committee on Water and Power. The committee voiced serious concerns that many parts of the country were still subjected to massive power cuts despite the payment of Rs480 billion to the IPPs.
“Excessive load-shedding is fuelling provincialism across the country, which is a bad sign for the federation,” said the convener of the committee Maula Bakhsh Chandio. Noting that there was no change in the generation capacity despite the clearance of circular debt, he said the officials of the Ministry of Water and Power, National Electric Power Regulatory Authority (Nepra) and National Transmission and Dispatch Company (NTDC) were not sincere about eliminating load-shedding.
The senators were also angered by the absence of the chief executive officers of the Hyderabad and Sialkot Electric Supply Companies (Hesco and Sesco) from the meeting.
“These officials have insulted parliament by failing to attend the meeting … strict action will be taken against any official who does not attend the meetings of this committee in the future,” Chandio said, adding that this was the last chance for Hesco and Sesco officials.
Power ministry and NTDC officials failed to answer the questions posed by Pakistan Muslim League-Nawaz Senator Nisar Muhammad Khan regarding the reduction of generation capacity despite the clearance of circular debt.
“Power generation should have increased after the IPPs were paid, but the situation seems to be heading in the opposite direction,” he said. Senator Khalida Parveen said it was unfortunate that the government had failed to end load-shedding even after paying Rs480 billion.
The Senate panel directed NTDC officials to provide details of the IPPs’ power generation schedule during the last two years. It also sought information regarding the mode of payment used to pay the IPPs from the ministry of finance. The committee also directed the Ministry of Water and Power, and NTDC to provide a copy of agreements made with different IPPs along with all relevant details.
During the meeting, the senators criticised Hesco and Sesco for failing to provide any relief to consumers despite receiving funds from the World Bank and Asian Development Bank.
Published in The Express Tribune, October 24th, 2013.
A Senate panel grilled the government on Wednesday about paying Rs480 billion to independent power plants (IPPs) which have violated their agreements by slashing power generation.
The revelation that the IPPs were paid despite reneging on the agreement to enhance generation came during a meeting of the Senate Standing Committee on Water and Power. The committee voiced serious concerns that many parts of the country were still subjected to massive power cuts despite the payment of Rs480 billion to the IPPs.
“Excessive load-shedding is fuelling provincialism across the country, which is a bad sign for the federation,” said the convener of the committee Maula Bakhsh Chandio. Noting that there was no change in the generation capacity despite the clearance of circular debt, he said the officials of the Ministry of Water and Power, National Electric Power Regulatory Authority (Nepra) and National Transmission and Dispatch Company (NTDC) were not sincere about eliminating load-shedding.
The senators were also angered by the absence of the chief executive officers of the Hyderabad and Sialkot Electric Supply Companies (Hesco and Sesco) from the meeting.
“These officials have insulted parliament by failing to attend the meeting … strict action will be taken against any official who does not attend the meetings of this committee in the future,” Chandio said, adding that this was the last chance for Hesco and Sesco officials.
Power ministry and NTDC officials failed to answer the questions posed by Pakistan Muslim League-Nawaz Senator Nisar Muhammad Khan regarding the reduction of generation capacity despite the clearance of circular debt.
“Power generation should have increased after the IPPs were paid, but the situation seems to be heading in the opposite direction,” he said. Senator Khalida Parveen said it was unfortunate that the government had failed to end load-shedding even after paying Rs480 billion.
The Senate panel directed NTDC officials to provide details of the IPPs’ power generation schedule during the last two years. It also sought information regarding the mode of payment used to pay the IPPs from the ministry of finance. The committee also directed the Ministry of Water and Power, and NTDC to provide a copy of agreements made with different IPPs along with all relevant details.
During the meeting, the senators criticised Hesco and Sesco for failing to provide any relief to consumers despite receiving funds from the World Bank and Asian Development Bank.
Published in The Express Tribune, October 24th, 2013.