Islamabad, April 18, 2013 (PPI-OT): Taking cognizance of excessive load shedding and suffering of the people, Chairman NAB summoned representatives of all stakeholders on Tuesday April 16, 2013. Representatives of Ministries of Water and Power, Finance, Petroleum, FBR, NEPRA, Planning Commission, SSGCL, and SNGPL attended. In the course of this numerous issues came to light.
Despite clear instructions by the interim government that the priority of supply of gas would start with the general public, followed by efficient power producing companies and lastly “Captive Power Generators”; governmental instructions are being flouted and violated.
Captive Power Generators are units that are provided gas at subsidized rates so that they can provide electricity to industries. However, some of the captive power generators are still being provided gas at subsidized rates, but are selling electricity back to the government at full rates, instead of to the industries at subsidized rates; this is an instance of corruption, which is not possible without, at the least criminal negligence and, at the most connivance of government functionaries.
Another related issue that came to light is the fact that governmental instructions clearly stated that priority of provision of subsidized gas to Independent Power Producers (IPP) would go to those which are efficient power producer having more than 50% efficiency. Again, in violation of these instructions, subsidized gas is still being provided to inefficient IPPs.
Representative of NEPRA also pointed that, while NEPRA is responsible for fixing the tariff rates, governmental ministries issue the notification of these tariffs, which is frequently delayed, resulting in losses to the IPP as well as the public at large. In addition, representative of NEPRA held the view that, in some instances, line losses and loss due to theft of electricity ranged between 50 to 80 % of the power being produced. NEPRA will provide details of these instances to NAB shortly.
In addition, in order to favor large land holders, electricity is being provided for tube wells at the flat rate of rupees 8 per unit. This is resulting in enormous loss to the exchequer and to the suffering of the general public, which is criminal.
It also became obvious during the course of the meeting that no single organ of the state was responsible for the mess that has been created in the power sector; nor is there any integrated energy management policy.
In view of this appalling state of affairs, Chairman NAB has issued the following instructions:
a) Government orders/ instructions must be followed strictly in letter and spirit.
b) Gas will be provided in accordance with laid down priorities with the highest priority going to the public at large followed by efficient power producers.
c) An inquiry will be conducted by NAB to decide whether the decision to provide electricity to tube wells at a flat rate had a criminal aspect or not.
d) The final date of clearing overdue electricity bills is April 19th. All debtors, including governmental organizations must clear their dues or face criminal proceedings.
e) Chairman NAB held the view that re-appropriation of monies by ministries/organizations was unnecessary for clearance of electricity dues and instructed all governmental organizations to clear their dues forthwith.
f) Regulators were instructed to ensure that they perform their assigned role in accordance with the law; failing which NAB will proceed against individuals and/ or organizations.
g) Hence forth NAB will monitor the function of the entire power sector, including SSGCL and SNGPL, to ensure relief of provision of gas to the public at large, as well as maximum efficient power generation, also intended to bring relief to the public at large.
This is the final warning to all individual, government institutions, government functionaries and, if not heeded, criminal proceeding will be initiated by NAB against all violators. Meantime, NAB will look into the role of regulators and government functionaries to decide whether to initiate criminal proceedings against them.
For more information, contact:
National Accountability Bureau (NAB)
ATTATURK AVENUE G-5/2, Islamabad
Tel: 051-111-NAB-NAB (111-622-622)
Email: firstname.lastname@example.org, email@example.com