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Business Recorder
5 days ago
- Business
- Business Recorder
Electricity subsidies: Minister questions reliability of BISP data
ISLAMABAD: Federal Minister for Power Sardar Awais Ahmed Khan Leghari on Tuesday questioned the reliability of data from the Benazir Income Support Programme (BISP) that the government intends to use for targeting and expanding electricity subsidies. Speaking during a meeting of the National Assembly Standing Committee on Power, chaired by MNA Muhammad Idrees, the Minister addressed several issues concerning power subsidies and theft. In response to a query by Rana Muhammad Hayat about domestic consumers using up to 200 electricity units per month, Leghari said that of the total 380 million consumers, around 180 million of them fall into this usage category, which sees an annual growth of approximately four million consumers. Targeted power subsidies under BISP: Roadmap submitted to IMF, World Bank He emphasised that subsidised electricity is meant to support low and middle-income households. 'Protected consumers are receiving electricity at an 80 percent discounted rate, which is the lowest in the region,' he stated. The Minister pointed out that many consumers using up to 300 units per month have installed solar PV systems, which they utilise during daylight hours for purposes like water extraction and operating agricultural equipment. As a result, the subsidy burden has increased significantly. 'We are moving towards reforms to ensure subsidies are extended equitably to truly deserving individuals. However, there are discrepancies in the BISP data that need to be addressed to ensure fair treatment,' Leghari said. On the issue of minor variations in monthly consumption— such as 200 versus 201 units— the Minister noted that a threshold must be established. He added that the Prime Minister has launched the 'Apna Meter, Apni Reading' mobile application to help curb over-billing. When asked about power sector losses, the Minister revealed that electricity theft accounts for Rs 250 billion annually, out of total losses amounting to Rs 500 billion. The remaining half is attributed to non-recovery of bills. He clarified that electricity cannot be supplied to illegal housing societies or slums (katchi Abadis) unless requested by local authorities. Distribution companies (Discos), he added, are only obligated to provide connections upon formal requests from relevant authorities. 'While supplying electricity to informal settlements may be financially beneficial for Discos, it ultimately burdens the national exchequer,' Leghari explained. 'Although increased consumption can lower tariffs, we cannot extend services to unregulated developments.' The Minister confirmed to Business Recorder that Sindh Chief Minister Murad Ali Shah had responded to his earlier correspondence regarding the discontinuation of Electricity Duty (ED) on power bills starting July 1, 2025. Responses from other provinces are still awaited, he said, adding that annual ED collections currently stand at around Rs 60–70 billion. 'We'll be discussing Sindh's response at the Prime Minister's level,' he said. Leghari acknowledged that the ED is a legitimate provincial right, but argued that provinces should collect it independently instead of using Discos as collection agents. He also expressed a desire to simplify power bills. 'If there's any variation in ED collection, a settlement process is followed. But I do not want to act as a collecting agent for provinces,' he asserted. In response to another query, Leghari confirmed that discussions with the International Monetary Fund (IMF) and development partners are ongoing regarding subsidised electricity tariffs for the industrial and agricultural sectors. However, the Committee decided to defer agenda items related to discriminatory electricity load-shedding by Hyderabad Electric Supply Company (HESCO) and denial of basic utility rights to bill-paying constituents, as well as the comprehensive briefing by the CEO, HESCO, on electricity load-shedding and completion of grid station works at Jam Nawaz Ali, district Sanghar. The Committee reviewed the comprehensive report on the implementation status of its previous recommendations from the meeting held on May 29, 2025, and expressed satisfaction with the majority of the actions taken. The Special Secretary, Power Division, informed the Committee that in response to the Committee's recommendation, the issue of initiating electricity billing in 25 villages in Shabqadar, district Peshawar, was reconsidered. Meetings had been convened with the local community and concerned MNAs to resolve the matter. The CEO, PESCO, informed the Committee that local residents remain unwilling to clear outstanding dues or accept individual electricity meters, insisting instead on a fixed monthly lump-sum payment per household. The MNA from Charsadda apprised the Committee that the issue dates back to 1999, and electricity connections to the residents were disconnected in 2022. To resolve the issue, the MNA from Charsadda proposed the provision of solar energy system to the affected villages. However, the Minister for Power explained that actions are currently under way to curb illegal connections, and electricity meters are being installed based on Computerised National Identity Cards (CNICs). He further requested that the concerned MNA provide details of unauthorised connections. The Committee decided that upon receipt of the details, a sub-committee would be constituted to investigate the matter further. The Committee was also briefed on the internship programs offered during the Financial Year 2024-25 across departments under the Power Division. It was informed that a total of 1,996 unpaid and 551 paid internships had been offered. While student interns receive only a token amount of Rs. 3,000 per month, graduate engineers under the apprenticeship program are paid Rs. 75,000 per month for two-month tenure. Members expressed concern over this disparity and directed the Division to explore options for establishing a uniform and market-competitive stipend policy. Further, the Committee deliberated on the non-completion of work on two 11KV feeders— Jhalkot and Komalia— crossing the River Indus in Kohistan. It directed that WAPDA release the required funds to PESCO for timely completion of these projects. A comprehensive joint briefing was also given by HESCO and K-Electric regarding the provision of an alternate grid station (500KV to 220KV) to enhance power supply to Sindh and Karachi. This included proposals for additional transformers, upgrading the existing transformers at Jamshoro, and establishing a new 220KV Grid Station at Nawabshah. NTDC also presented a briefing on the development of an alternate power source near Sekhat Road (500KV to 220KV) in Sindh, and the installation of transmission lines from the Mirpurkhas NTDC Grid Station. Syed Waseem Hussain, MNA from Hyderabad, raised concerns about the current electricity distribution status, noting that HESCO is also supplying electricity to Karachi. He stated that due to rising demand, the distribution system is often rendered dysfunctional. At present, demand stands at 1600MW, while supply is limited to 1100MW. He proposed the establishment of a new grid station in response to the area's growing population. The Committee, after the briefing, directed the CEO, HESCO and MD, NTDC to prepare a comprehensive technical and financial report addressing grid issues and power sector reforms for presentation in the next meeting. Rana Muhammad Hayat Khan, MNA from Punjab, raised the issue of numerous illegal electricity connections in Katchi Abadis in major cities. He proposed regularising these connections through fines and issuing formal demand notices. The Minister responded that power supply planning to new housing schemes depends on the prior approval of layout plans by municipal or development authorities, as power infrastructure needs to be aligned with other essential services such as water, sanitation, and road networks. Lastly, the Committee decided to take up in its next meeting the issue of varying charges levied on consumption of 200 and 201 electricity units. The Minister; however, proposed that the next session should primarily focus on electricity theft and the status of bill recoveries across the Division. The meeting was attended by MNAs Sheikh Aftab Ahmed, Chaudhry Naseer Ahmed Abbas, Syeda Nosheen Iftikhar, Rana Muhammad Hayat Khan, Muhammad Abdul Ghaffar Watto, Muhammad Shaharyar Khan Mahar, Syed Abrar Ali Shah, Syed Waseem Hussain, Malik Anwar Taj, Sher Ali Arbab, Haji Imtiaz Ahmed Choudhry, and Ali Afzal Sahi. Senior officers from Power Division, NTDC, HESCO, PESCO, K-Electric and TESCO were also present. Copyright Business Recorder, 2025
Business Recorder
05-05-2025
- Business
- Business Recorder
Repayments via power bills: DC fans to replace AC ones thru govt initiative
ISLAMABAD: The government is poised to launch a nationwide initiative to replace alternating current (AC) fans with more energy-efficient direct current (DC) fans. This programme will be funded by commercial banks, with repayment to be made in small installments through electricity bills. Dr. Fakhray Alam Irfan, Secretary of Power, disclosed this information during a meeting of the National Assembly Standing Committee on Power, chaired by Muhammad Idrees. He explained that key fan manufacturers have been in regular discussions with the National Energy Efficiency and Conservation Authority (NEECA). As a result, many large manufacturers have already shifted from producing AC fans to DC fans. In addition, Dr. Irfan highlighted a new program introduced by the Prime Minister, which will be rolled out within the current financial year. The program, which is almost finalized, allows consumers who opt to participate to receive loans from banks to replace their old, inefficient AC fans with energy-efficient DC fans. These loans will be repaid through adjustments in their electricity bills. The committee was informed that the replacement of AC fans with DC fans could save up to 5,000 MW of electricity, eliminating the need for additional generation capacity. Currently, AC fans consume 388 million units of electricity annually, costing $25 million. Air conditioners account for 135 million units with a financial impact of $7 million, while refrigerators consume 1,073 million units at a cost of $53 million. Beating the heat, cutting the cost: How inverter fans have taken over the market The committee was also briefed on steps being taken to ensure energy conservation across public sector organizations. The Power Minister has written to all public sector departments to comply with energy-saving building codes, and provincial governments have been urged to implement these codes as well. The committee plans to send its recommendations to the provincial governments for further action. The government's target is to save $6.4 billion annually starting from 2030 through the implementation of Minimum Energy Performance Standards (MEPS). During the meeting, MNA Chaudhary Naseer Ahmed Absas revealed that some guest houses in Islamabad are involved in electricity theft, allegedly in collusion with officials from the Islamabad Electric Supply Company (IESCO). He added that one IESCO official owns a guest house that is directly supplied with electricity. Absas further claimed that consumers who have installed solar photovoltaic (PV) panels are being sent inflated bills. Additionally, meters in several government buildings and water pumps are reported to be faulty or burnt, yet these consumers are still being overbilled, with the costs of stolen electricity added to their charges. The issue of recovery and losses at Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO) also came under discussion. It was revealed that the figures provided by the Power Division and both distribution companies differed, leading to a disagreement between the Power Minister, Sardar Awais Khan Leghari, and the CEO of HESCO. Imtiaz Gilani, Additional Secretary of the Power Division, noted that the performance of both HESCO and SEPCO had deteriorated compared to the previous year. In his briefing on the Indicative Generation Capacity Expansion Plan (IGCEP) for 2025-35, the Power Minister stated that when the current government took office, there were plans for power projects totaling 90,014 megawatts. By eliminating expensive projects, the government has reduced the financial burden by Rs 1,953 billion. He further explained that by adjusting the timelines of these projects, the government has saved Rs 2,790 billion, ultimately saving consumers Rs 4,700 billion. The Minister emphasized that with this revised planning, the government will no longer need to purchase additional electricity, and the expected rise in electricity prices will no longer occur. 'Had we not made these adjustments, the additional costs would have inevitably been passed on to the consumers,' he added. During the meeting, MNA Ameen-ul-Haq from Karachi inquired about safety measures in place for electricity distribution in the city. Sadia Dada, Chief Distribution Officer at K-Electric (KE), responded that strict safety measures are enforced during both the summer and monsoon seasons. She explained that water accumulation caused by rainfall and illegal power connections (known as 'kundas') create further challenges. To mitigate these issues, KE temporarily shuts off grids during rainy seasons to protect lives, and power is restored once the water levels recede. Dada also noted that KE operates 2,100 feeders, with 70% of them free from load-shedding. Industrial areas are fully exempt from load-shedding. KE plans to invest around $2 billion in upgrading its system, with the investment plan awaiting approval from the National Electric Power Regulatory Authority (NEPRA). Secretary of the Power Division, Dr. Fakhray Alam Irfan, informed the committee that KE currently receives 900 MW of electricity from the national grid, and this supply will increase to 1,600 MW in the near future. He further stated that the provision of additional electricity from the national grid would reduce the financial burden of subsidies on the government. On the issue related to restoration of electricity supply in those areas of KP where losses are 80- 100 per cent also came under discussion. Power Minister stated that a policy be framed with the support of public representatives but in case of loss, no electricity will be supplied. Copyright Business Recorder, 2025
