Islamabad : The Meeting of the Senate Standing Committee on Power, chaired by Senator Mohsin Aziz held at Old PIPS Hall Parliament Lodges. The Meeting was attended by Senators Syed Shibli Faraz, Mir Dostian Khan Domki, Manzoor Ahmed Kakar, Haji Hidayatullah Khan, Asad Qasim, Minister For Energy (Power Division) Awais Leghari and other Concern Officers.
The Senate Standing Committee was briefed the Committee on the procurement of Narowal Coal Power Plant (a Govt. owned IPP) allegedly at the rate of Rs. 75000/ton whereas the market price of coal is Rs.40000/ton. However, during the briefing, it was revealed that the issue was not about the Narowal Coal Power Plant but the Sahiwal Coal Power Plant. It was also clarified that this plant is not a government owned Independent Power Producer (IPP). The Committee expressed concern over the incorrect information and asked for a detailed report to ensure transparency and accountability.
The Ministry further informed regarding the
On-going IPP’s negotiation and timeline of expected relief for the public and industrialists. Pursuant to the efforts of Task Force, Power Purchase Agreements with 6 IPPs have been terminated, revised agreements for tariff reduction have also initialed with 8 Bagasse Power Plants and 14 IPPs of Power Policy 1994 & 2002. As per the relevant summaries of the Ministry of Energy (Power Division), the early termination of 5 IPPs would result in overall savings of around Rs 411 billion. Further, savings on account of revised tariff terms with 8 Bagasse Power Projects and 14 IPPs of Power Policy 1994 & 2002 is estimated around Rs 238 billion & Rs 922 billion respectively over the remaining life of these projects.
The Chairman expressed concern over the remaining 75 IPPs, questioning the delay despite the formation of a dedicated Task Force to expedite the process. He emphasized the need for swift action to ensure timely relief. The Ministry informed the Committee that negotiations are being conducted individually with each IPP, which requires time. However, the Ministry assured that the process is expected to be completed by April or May, with a likelihood of finalization by the last week of April.
The Committee has sought detailed information mentioned that, to date, the authorities have failed to provide the commencement date of these projects, the final price, and the local manufacturing cost of the plant. He further stated that the balance sheet showed a profit of around 79% for the manufacturer. Additionally, the forensic audit of the plant was avoided, and the efficiency declared by the plant manufacturer, which was not up to the mark, was also not challenged by the government departments.
The Committee also discussed that the new net metering policy under which the government will purchase electricity from new solar consumers at Rs. 10 per unit instead of Rs. 27. However, electricity consumed between 6 PM and 10 PM will be charged at Rs. 45 per unit. Without this policy, electricity prices could rise by Rs. 3.50 per unit.
The Energy Minister assured that existing net metering consumers will continue under their current contracts until expiration. Consumers who installed solar panels without net metering will remain unaffected. The ECC has approved the policy, but cabinet approval is pending.
He emphasized that solar policy changes are necessary to avoid purchasing expensive electricity at public expense. Import duties on solar panels remain unchanged. Currently, 283,000 solar consumers generate 4,000 MW. The new policy aims to lower solar system costs, making them more accessible.