ISLAMABAD: Prime Minister Raja Pervez Ashraf on Thursday said that the resolve of preparing an upfront tariff was in national interest and would pave way for investors to make investments in the power sector without wasting time.
This he said while chairing the 10th meeting of the Council of Common Interests (CCI) convened after the passage of 18th Amendment to the constitution at the prime minister secretariat.
The meeting also decided to constitute a standing committee of the CCI which would be headed by the secretary inter-provincial coordination division as chairman with the joint secretary CCI, the federal law secretary and secretaries inter-provincial coordination of provincial governments as its members.
The committee would examine and scrutinize the cases/issues enumerated in federal legislative list (part 2) which are to be placed before the CCI.
While discussing the working and functioning of the National Electric and Power Regulatory Authority (NEPRA), the prime minister said the NEPRA should have in-house capability and expertise to determine upfront tariff for power plant run on coal, wind, solar, bio-gas, natural gas, oil etc. “The tariff should be such that it must provide incentives and attract the investors,” he said.
The meeting was also informed that work on draft electricity law needs to be expedited.
The premier also directed the secretary water & power in her capacity as secretary cabinet division to coordinate with the NEPRA for working out upfront tariff.
The meeting was informed that the governments of Punjab and Khyber Pakhtunkhwa have notified the police officials and other staff to help the distribution companies in the recovery of dues and check theft.
The issue of renaming of ministry of professional and technical training as ministry of education and training was deferred for the next CCI meeting.
The meeting also discussed the report of the committee constituted by the CCI for giving its recommendations for equitable distribution of electricity in the country.
The meeting was informed that the committee held three meetings on 11th August, 15th August and 15th September 2012 and had come up with the following recommendations:-
i. The existing formula of distribution of electricity between different distribution companies in practice since 2006 may not be changed.
ii. KESC will use its idle capacity to reduce their 650 megawatts import from National Grid by 300 MW.
iii. For financing / investment in hydro power projects, where financing has not yet been committed by any source, the provinces may contribute as investor in financing through a SPV / Holding Company.
iv. The proposals and schemes prepared by federal government for conversion of street lights to solar mode, distribution of CFLs and UPS charging on solar mode will be looked into for further action after detailed study by the provinces.
v. Open access policy and draft Electricity Act and conservation of energy law will be presented before CCI for further processing.
vi. Provincial Police Departments will designate one DSP with 40 staff members at the disposal of each DESCO which can be deployed anywhere in the DESCO area for recovery of revenue/bills and for instituting theft cases. DESCOs will bear financial liability in this respect.
vii. Energy projects including generation and conservation should be duly budgeted as a defined share in provincial annual development programme.
viii. Replacement of incandescent bulbs with CFLs / LEDs.
ix. Phasing out of manufacture and import of incandescent bulbs.
x. Gas fired geysers to be replaced by solar water heaters.
xi. Introduction of Micro-solar grids for upto 10 households through micro financing. After development of model, it will be shared with the provinces.