NA body seek briefing on Circular Debt Management Plan

ISLAMABAD:The National Assembly Standing on Monday directed the Power Ministry to brief the Committee on the “Circular Debt Management Plan”.

The committee met with Chaudhry Salik Hussain in the chair discussed various agenda items the regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Bill, 2020, imposition of surcharges, affairs of DISCOs and PSDP for year 2021-22 etc.

The committee deliberated on the Bill “The regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Bill, 2020″ .

The Committee sought answers from the ministry on the clauses relating to the imposition of surcharge and opined that there was ambiguity in the collection of surcharges by the DISCOs and by the Federal Government.

Salik Hussain and Members said that cross subsidy be eliminated and each DISCO should have its own tariff based on its cost structure and Aggregate Tariff Cost (ATC) loss level.

The chairman observed that if the ministry was to impose surcharge it should only be for existing stock of circular debt and it might be levied as a flat kwh/hr across all DISCOs and consumers.

For the surcharge, the government should explicitly narrate the various purposes and the inefficiency of the DISCOs should not be passed on to the consumers in form of surcharge.

The ministry should clarify how it intends to segregate the future periodic tariff increases, determined by NEPRA from time to time.

The chairman pointed out that being a peoples representative, he was interested to know the impact of the bill on the masses.

The bill was deferred for the next scheduled meeting with the direction to give rationale/justification for the imposition of surcharge through legislation.

The committee gave its nod of approval to the budgetary proposals amounting to Rs 143.13 billion relating to Public Sector Development programme (PSDP) for financial year 2021-22.

The committee also set up a Sub-Committee with the Term of Reference including

discuss and recommend for resolving the issues faced by the Legislators with respect to Karachi Electric Company (KE) and different DISCOs of Sindh”.

MNA Lal Chand will be convener while Syed Ghulam Mustafa Shah, Ms. Saira Bano,

Sabir Hussain Kaim Khani will be its members.

The meeting was attended by Minister of Power Division Omer Ayub Khan MNAs

Sher Akbar Khan, Ghulam Bibi Bharwana, Saif Ur Rehman, Lal Chand, Engr. Sabir Hussain Kaim Khani, Muhammad Israr Tareen, Saira Bano, Mian Riaz Hussain Pirzada, Shazia Marri, Secretary, Ministry of Power Division and senior officers of the relevant departments.