ISLAMABAD: While the PML-N government claims that the energy sector is their topmost priority, recent events show that there is a lot left to be desired in their handling of this most sensitive issue.

On the heels of the failure of the much-hyped Nandipur power project, a new mess has surfaced with regard to the running of distribution (Discos) and generation companies (Gencos).

These under-staffed companies sought to make fresh recruitments on thousands of vacant positions to improve operations, but the Privatisation Commission (PC) – which had earmarked all 10 Discos and most of the Gencos for privatisation in the coming years and months – wanted to prevent them from hiring more staff.

Take a look: Privatisation signals

But the lack of coordination between key government departments, specifically the Ministry of Water and Power and the PC, became apparent when the latter was forced to withdraw its directives, restraining these companies from hiring new staff following an intervention from the prime minister himself.

Privatisation Commission, ministry at odds over recruitments to Discos, Gencos

“This issue has generated so much heat in the corridors of power over recent days that the PM has had to step in personally,” a senior government official privy to these developments told Dawn.

When asked to comment on the controversy regarding appointments to the power sector, PC Chairman Mohammad Zubair confirmed that he had to withdraw his earlier instructions because he was “unaware of the ongoing recruitments in the power sector”.

“We have asked Discos and Gencos to make only those appointments that are critical to their operations,” he added.

But his stance is contradicted by a letter written by PC Secretary Sardar Ahmad Nawaz Sukhera in the first week of September and flagged as ‘Top Priority and Most Urgent’.

“It has come to the knowledge of the PC that certain Discos and Gencos, which are included in the privatisation programme, already approved by the Council of Common Interests and the Cabinet Committee on Privatisation, are in the process of hiring a significant number of employees without taking any approval from the PC,” reads the letter.

In his letter, the PC secretary refers extensively to the Privatisation Commission Ordinance, 2000, whereby, once it is decided that a public sector entity will be privatised, the PC acquired significant powers over the management of its assets; so much so that the PC could even change the management of a government entity to ensure its privatisation is conducted smoothly.

According to another government official, the issue has created a ‘stir at the top’ and that the PC’s intervention had thrown a spanner in the works for recruitments on nearly 10,000 to 15,000 vacancies.

The two officials claimed that the staff shortage was causing serious hurdles in the smooth running of the power companies.

The companies regularly face problems discharging routine operations such as meter-reading, bill distribution, timely redressal of complaints and operational maintenance. One of the officials recalled how in September last year the federal government had to face embarrassment over the issue of bloated electricity bills. Later upon inquiry, the prime minister was told that the problem was caused due to a shortage of meter readers.

The two officials also expressed their surprise over the lack of coordination between the power ministry and the PC, saying that the recruitment drive by Discos and Gencos was not a surprise move since these vacancies had been advertised in daily papers.

Dr Mussadik Malik, the PM’s spokesperson who also heads the Lahore Electricity Supply Company (Lesco), wasn’t available for comment.

Lesco, Fesco and Iesco, along with the National Power Construction Corporation and the Northern Power Generation Company, are among the ‘Upcoming Transactions’ listed on the PC’s official website. 

Published in Dawn, September 17th, 2015

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