Senate Standing Committee meeting amidst NEPRA criticisms & rising electricity costs

ISLAMABAD, August 30 (SABAH): The Senate Standing Committee on Power was held on Friday under the Chairmanship of Senator Mohsin Aziz. During the meeting significant concerns were raised about the current state of the power sector and regulatory practices.

NEPRA Chairman Waseem Mukhtar admits to decreasing electricity demand. Chairman of the National Electric Power Regulatory Authority (Nepra), Waseem Mukhtar, acknowledged a continuous decrease in electricity demand, revealing that the authority does not intend to add more capacity to the grid. Mukhtar stated, “Our electricity demand is continuously decreasing.”

The Committee Members Challenge Nepra’s Independence and Tariff Decisions. Senator Shibli Faraz criticized Nepra’s independence and questioned its recent tariff adjustments. He inquired whether Nepra had increased electricity costs by three rupees instead of the anticipated five. Faraz demanded transparency regarding the increase in electricity prices over the past two years and urged the provision of detailed reports on power projects nationwide.

Similarly during the meeting Owais Leghari Addresses IPPs and Future Energy Projects. Owais Leghari, highlighted ongoing efforts to review and revise Independent Power Producers (IPPs) agreements, including those related to the Diamir Bhasha Dam. He warned that the cost of hydroelectricity from the Diamir Bhasha Dam will be high, stressing, “Diamir Bhasha Dam will increase electricity prices.”

Furthermore the Committee also commented on the Task Force to Scrutinize IPP, a task force has been established to closely examine IPPs, following recommendations from the Muhammad Ali Report. This report suggests a detailed study, including heat audits, though the focus has shifted towards arbitration rather than direct audits.

Additionally the Committee Debates Load Shedding and Project Costs. Owais Leghari also discussed the implications of load shedding and questioned the need for 1875 MW capacity if load shedding persists. Senator Mohsin Aziz raised concerns about the high cost of wind projects in Pakistan compared to international standards, urging a reassessment of why local projects are significantly more expensive.

Overall, the committee’s meeting underscored critical issues facing Pakistan’s energy sector, from regulatory challenges to escalating costs and project evaluations.