Privatization of power units opposed

Published January 10, 2004

ISLAMABAD, Jan 9: Wapda workers on Friday demanded of President Gen Pervez Musharraf and Prime Minister Mir Zafarullah Khan Jamali to stop the proposed privatization of the authority's profitable units like Jamshoro Power House and Faisalabad Electric Supply Company.

A meeting of Wapda workers was held under the aegis of Pakistan Wapda Hydro Electric Central Level Union (CBA). The workers said the proposed privatization of Wapda, especially thermal units, would further raise power tariff in the country. The union workers also threatened to come out on the streets in protest in case their genuine demands were not met.

The meeting, which was presided over by the union's president Khurshid Ahmed, said uniform power tariff was being maintained by Wapda by balancing the profit and loss making electricity units in different provinces. But, the proposed privatization, especially of loss making thermal units in different provinces like Sindh, Balochistan and the NWFP, would definitely increase power tariff.

The union said the alleged pressure by World Bank to discourage fresh recruitment's in the power utility would also seriously affect its productivity. They said since electricity production was an ongoing process, therefore, the organization needed continuous availability of trained manpower for uninterrupted supply of electricity. Therefore, it was necessary that recruitment of fresh employees should be encouraged.

They also mentioned the example of California (USA) where thermal power unit in the private sector raised the tariff by 300 times. Similarly, in the New Zealand experience, the distribution system of electricity generation collapsed after its privatization.

The members recalled that Wapda had to fulfil contractual obligation by purchasing electricity from the independent power producers, which were in the private sector and supplying electricity at high cost.

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