Islamabad:
The caretaker power minister has stepped in to defend corrupt electricity distribution companies (DISCOs) over allegations of inflated consumer bills and rejected a report by the power sector regulator.
Speaking to reporters on Wednesday, Power Minister Mohammad Ali claimed that the National Electricity Regulatory Authority (Nepra) used incorrect data in its report on overcharging, insisting that 10 million electricity consumers were not overcharged.
However, CEOs of DISCOs had recently admitted that their customers were over-indebted.
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In addition, the regulator used data from DISCOs which also revealed that customers were getting inflated monthly bills in a bid to show better performance of electricity distribution companies.
“Only 0.2 million customers have been affected by the overpricing,” the energy minister stressed, adding that an independent committee is working on the issue, which will submit its report within a week.
He was of the view that the wrong agreements signed by the previous governments with the electricity producers caused the electricity prices to rise.
Speaking at the 3rd International Hydropower Conference, the caretaker minister, while commending Energy Update for organizing the event, stressed that it will help improve the policy framework for the energy sector.
Calling the planned increase in the share of renewables and hydropower in the country’s energy mix a top priority of the government, he said it was the only way it could reduce electricity tariffs and provide affordable energy to consumers.
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Currently, the contribution of hydel and renewables stands at 31% and the government has launched an ambitious plan to increase it to 61% by 2030.
The minister noted that Pakistan has huge potential to generate wind, solar and hydropower. “We can generate about 64,000 megawatts from hydel source and we have only reached 11,000 MW so far.”
Among the hydropower projects, work is underway on the 4,200 MW Dasu Dam and Power Project, the 800 MW Mohmand Dam and the 4,500 MW Diamer Bhasha Dam. However, funding was a big issue for such large projects, he added.
Apart from extensive Hydel resources, Pakistan has 175 billion tonnes of Thar coal reserves that can generate electricity for decades.
Regarding energy conservation, the minister believes that 3,000 to 4,000 MW of electricity can be saved just by using energy efficient fans across the country.
Earlier, Private Power and Infrastructure Board (PPIB) CEO Dr Shahjahan Mirza emphasized that hydropower projects are equally beneficial for the environment and the national economy.
PPIB has so far commissioned four projects of 1,100 MW power generation capacity. However, he said, it was not easy to attract private sector investors to pour capital into hydropower schemes, which required huge funding and a long time to complete the work.
He believes the government’s target of producing 60% of energy through renewable and hydel sources by 2030 will attract around $100 billion in investment.
Pakhtunkhwa Power Development Organization (PEDO) CEO Engineer Muhammad Naeem while sharing his views on the occasion said that renewable energy could change the future of the country.
“Renewable energy is not only important for industry and other consumers, but also for the climate and the economy.”
Pakistan had huge hydel energy potential in the north and renewable energy, especially wind and solar, potential in the south, he pointed out, adding that PEDO was playing its role in developing small hydropower projects in remote and remote areas of Khyber -Pakhtunkhwa.
Some micro hydel projects are already providing electricity to the nearby locations at very cheap rates. Nine more 750 MW projects are under development.
He highlighted the need to focus more on renewable energy besides removing hurdles in its way to ensure supply of affordable electricity to general consumers and industries.
The CEO of the International Hydropower Association, Eddie Rich, in his video message, highlighted the importance and future prospects of hydel power.
Published in The Express Tribune, December 21St2023.
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