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Event Title: Senator Saifullah Abro presides over the 31st meeting of the Senate Standing Committee on Power

Event Date: 2023-01-02

The Senate Power Committee met on Monday under the Chairmanship of Senator Saifullah Abro to discuss various issues of the K- Electric including  inception of the Company, complete procedure including tendering process of privatization of K-Electric, ownership & achievements made so far, development sector plan and projects alongwith complete tendering process and investments made and complete details of correspondence made with Power Division regarding installation of new power plants and implementation status of the nine recommendations made by the committee in its previous committee meeting.

At the outset of the meeting, the committee expressed its displeasure at the non-participation of the Syed Moonis Abdullah Alvi, CEO, K-Electric in the committee meeting. The Chairman Committee said that in the previous meeting, the CEO, K-Electric was instructed to attend and brief to the Committee. “If such hooliganism happens, it will not continue”, Chairman Committee, he further said that, he will use the option of summoning him through the police. After the mutual consensus of the Committee, the Committee wrote a letter to Hon. Chairman Senate with the request to issue the summon notice to CEO, K Electric. The Committee also unanimously decided to move a privilege motion against CEO, K - Electric on his absence in the Committee.  The Committee also raised the absence of the Federal Minister for Energy (Power Division) from the Senate Standing Committee on Power. The Senate Standing Committee wrote an on spot letter to the Hon. Chairman Senate regarding the continuous absence of the Federal Minister for Energy (Power Division) from the Committee meeting and the committee members signed the Letter. The Committee observed that the privilege of the Committee was undermined when the Federal Minister did not come despite being called several times. The Chief Marketing & Communications Officer, K-Electric was representing the CEO and repeatedly said that she was ready to answer all the questions however the Committee believed that a person from the marketing is not eligible to give briefing regarding the development plans & investments made by K-Electric since 2006 till date. The Chairman Committee further said that the Energy sector is destroyed due to poor performance and incompetent workers of Power Division and reiterated questions on the Power Division 1434 agricultural Tubewells in Lesbela, and 28,000 tube wells which are being run by QESCO, but no one knows, and inquired on the letters to the FIA and NAB and it's inquiry report. The Committee also raised question on the details of K Electric contract and circular debt which has not been resolved as yet. Senator Fida Muhammad said that K Electric's contract with the National Grid expired in 2015, and eight years have been gone but the contract was unable to be renewed, to which the Ministry had no concrete answer. The committee members restrained the K-Electric to give briefing in the absence of the CEO, K-Electric however the Chairman Committee gave chance to the chief marketing officer and inquired the K-Electric on investment of Rs. 475 billion  of various projects which the official failed to answer.

The Committee also called for a briefing on the problems of Karachi's electricity consumers. The Chief Marketing & Communications Officer, K-Electric said that K-Electric’s presentation includes details of the annual investment and even in the years when losses occurred, the institution continued to invest. The Committee gave directive to implement the deployment of 20% Engineers to the all DISCOs and recommendation to IESCO, LESCO PESCO to implement the policy by the last week of January. The Committee members also got furious over MEPCOs refusal and directed the Power Division to approve the implementation of the quota from the Board of MEPCO within a week. The Committee believed that implementation of promotion policy for graduate engineers from LS-II to SDO in all DISCOs is necessary for the improvement of DISCOs.

Senator Syed Shibli Faraz asked an update about the introduction of star rating in electric fans aimed at manufacturing energy-efficient product to which Power Division was recommended to provide the update within two days.

While discussing the recommendations of the power committee on the rehabilitation plan of de-licensed public sector power generation plants and improvement of power generation plants of all GENCOs and business plan for rehabilitation of GENCO-I on LNG it was observed with utter disappointment that how come these GENCOs have no Chief Engineer, how can power plants be run without Chief Engineer the Chairman Committee questioned. The Committee showed great displeasure on the in competent and in appropriate CEO, GENCO II & III who had no knowledge of the field and came unprepared in the Committee meeting. The committee also showed great reservation on the recovery amount from the GE in light of letters issued by Power Division regarding recovery of amount from GE (Rs. 10.8 billion) and maintenance amount P.O $ 32 million regarding damage of 747MW (GT-14) and action taken against BoD, GHCL & BoD, GENCO-II. The Chairman Committee raised question as to how come P.O $32 million was released and stressed that the amount may be recovered, implement the recommendation and report to be submitted to the Committee within one week’s time.

The meeting was attended by Senators Fida Muhammad, Syed Shibi Faraz, Saifullah Sarwar Khan Nyazee, Zeeshan Khanzada, Haji Hidayatullah Khan and Senator Bahramand Khan Tangi. Officials from the Power Division, K-Electric, Privatization Commission and other attached departments were also in attendance.