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Energy committee calls for review of bagasse electricity pricing

The Senate Standing Committee on Power on Friday reviewed the overbilling, electricity theft and discrepancies in data of the power sector.

Meeting of the Senate Body held under the chair of Senator Mohsin Aziz in Parliament House was attended by Senator Palwasha Muhammad Zai Khan, Senator Kazim Ali Shah, Senator Muhammad Aslam Abro, Senator Hidayatullah Khan, the Minister for Energy (Power Division), The Secretary of Power Division, Special Secretary (Power Division), and senior officials from concerned departments.

The Committee discussed a point of public importance raised by Senator Palwasha Muhammad Zai Khan regarding the overbilling of electricity bills and the indifference of officers/officials to the plight of consumers, as referred by the House for a report during its sitting on 30-08-2024. Senator Palwasha expressed concern over incorrect meter readings, stating that her family had to visit the office 28 times in three months, where they were met with misbehavior.

Senator Palwasha condemned this conduct, labeling it as part of a mafia, and called for strict action. She suggested referring the matter to the FIA to dismantle this group and set an example. She emphasized that if such treatment could happen to her family, the hardships faced by the common public would be unimaginable.

The Committee Chairman, acknowledging her concerns, agreed that the issue was of public importance and noted that the scale of suffering is likely far greater. A senior official from the Power Division, while concurring with the members, informed the Committee that actions had already been taken. The individual responsible has been transferred, and the faulty meter reading has been canceled. He further stated that action has been taken against miscreants.

The Minister of Power Division added that what the Senator mentioned falls under customer care, which is not directly part of electricity distribution. He also noted that there is a complaint system, 118, and all calls made to this number are forwarded to the distribution companies. They are working on implementing a computerized system at the subdivision level and revamping it to ensure complaints are resolved with equal importance. He emphasized that simply transferring people is not the solution; they are striving to make real changes.

Emphasizing the need to address electricity theft and overbilling, Chairman of the Committee Senator Mohsin Aziz also directed the Power Division to provide clarity in their reports, noting inconsistencies in their responses regarding the number of Bagasse-based IPPs operating in the country and their tariff determination. He questioned how Bagasse was priced at $53, stating that this was where the exploitation begins, as the price of Bagasse cannot be easily determined. He suggested that the Ministry cross-check Bagasse pricing and explain why this issue arose in 2013 and 2015. He further added that linking the price to the dollar and imported coal has created a depreciation advantage for local operators. He recommended that the Ministry review the Bagasse pricing and submit a report accordingly.

Subsequently, a detailed report on load-shedding and feeder-wise electricity distribution was presented by PESCO and SEPCO. MNA Asif Khan (NA-32) raised concerns regarding his constituency, addressing issues of mistreatment, overbilling, and electricity theft. Similarly, Senator Mohsin Aziz pointed out the insertion of two feeders in one area, which has caused significant data discrepancies and requires cross-verification. He also highlighted discrepancies in feeder rates in the data provided by SEPCO, noting that line losses from one area seem to have been attributed to another.

In his concluding remarks, Senator Mohsin Aziz recommended organizing the feeder-wise details more systematically by dividing the data into six-month periods and categorizing load-shedding under categories 2, 5, and 6 to provide a clearer picture. He also criticized the inappropriate behavior of PESCO and SEPCO towards the public, calling for an explanation for the widespread electricity theft. Based on the report, the committee will further investigate corruption within the responsible departments.

Filed Under: Pakistan

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