Cabinet Committee on restructuring on power sector reviews the progress and implementation of Cabinet’s decisions with regard to power sector recovery plan
Islamabad: A meeting of Cabinet Committee on Restructuring (CCOR) on Power Sector held here today under the chairmanship of Federal Minister for Finance and Economic Affairs Dr. Abdul Hafeez Shaikh to review the implementation of Cabinet’s decisions (October 12, 2011) with regard to the Power Sector Recovery Plan 2011.
The CCOR discussed different cabinet’s decisions on governance, structural adjustments, tariff, load management and some special issues and their subsequent progress. It was informed to the CCOR that all financial and administrative functions of PEPCO have been transferred to the National Transmission and Dispatch Company (NTDC) and Central Power Purchase Agency (CPPA) on 30th October, 2011 and CPPA has fully operationalize now.
Only some minor issues in dissolution of PEPCO are left, which would be resolved in a day. It was also informed that board of directors of GENCO Holding Company has been constituted and their first meeting will be held tomorrow.
The committee discussed in detail the ongoing process of recruitment of CEOs for all DISCOs. It was pointed that only FESCO has shortlisted the names of candidates for the said post and other DISCO has not shown any progress in this regard. The committee decided to push the remaining DISCOs for the early completion of process for appointments of CEOs in their respective companies.
CCOR reviewed the decision on establishment of a professional joint/directorate in ministry of water and power to effectively manage policies of power sector. The finance minister asked Minister for petroleum and natural resources and Secretary Finance to conduct a separate detailed meeting in order to resolve all issues faced in establishing of the said directorate.
It was informed that cabinet’s decision to disconnect electricity to the defaulters over 45 days has been implemented and following guidelines have been issued to all DISCOs. The committee was informed that 34000 disconnections have been carried out in three months and the recovery ratio from the different DISCOs has been improving gradually. In the same way every DISCO has been asked to put in a plan for reduction of their losses, comprising both technical and non technical losses (theft).
The CCOR discussed the agenda of private sector involvement in metering, billing and collection and decided to conduct a separate meeting to discuss the said proposal in detail.
The CCOR also deliberated on tariff determination. The CCOR was informed that technical work on tariff determination has been completed and legal work in under process. In the same way the mechanism for uniform tariff for whole country and simplification for tariff are under development.
Some special issues on tube well subsidy in Balochistan and installation of meters on tub wells were also discussed in the meeting. In this regard, QESCO has initiated the meter installations and technical discussions regarding subsidy per tube well is underway with GOB/QESCO.
The committee discussed the load management and conversation programme in the context of closing markets at 10 pm and two holidays in a week and decided to involve the concerned department for proper implementation of said programme.
Ministers for Water and Power, Privatization Law, Secretaries for Finance, Petroleum and Natural Resources, Water and Power, Director General NEPRA and other high officials were also present in the meeting.
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