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Thursday, April 18, 2013

NAB warns state institutions over power crisis

Staff Report

ISLAMABAD: After the failure of many state institutions in resolving power crisis in the country, the National Accountability Bureau (NAB) has finally intervened, identifying many corrupt practices in the power sector.
While identifying gross violations by different state-owned institutions aggravating power crisis further, NAB has issued a final warning to all government institutions and government functionaries. NAB has announced that in case the corrupt practices were not eliminated, criminal proceeding will be initiated against all violators. The NAB will also look into the role of regulators and government functionaries to decide whether to initiate criminal proceedings against them.
Taking cognisance of the issue, NAB has ordered immediate corrective measures for maximizing generation with available gas and hydel resources to provide ease to the power consumers in peak summer season.
Chairman NAB summoned representatives of Ministries of Water and Power, Finance, Petroleum, FBR, NEPRA, Planning Commission, SSGC, and SNGPL.
Despite clear instructions by the interim government that the priority of supply of gas would start with the general public, followed by efficient power producing companies and lastly “Captive Power Generators”; governmental instructions are being flouted and violated. Captive Power Generators are units that are provided gas at subsidised rates so that they can provide electricity to industries. However, while some of the captive power generators are still being provided gas at subsidised rates, they are selling electricity back to the government at full rates.
Another related issue that came to light is the fact that governmental instructions clearly stated that priority of provision of subsidised gas to Independent Power Producers (IPP) would go to those which are efficient power producer having more than 50% efficiency. Again, in violation of these instructions, subsidised gas is still being provided to inefficient IPPs.
Representative of NEPRA also pointed that, while NEPRA is responsible for fixing the tariff rates, governmental ministries issue the notification of these tariffs, which is frequently delayed, resulting in losses to the IPP as well as the public at large. In addition, representative of NEPRA held the view that, in some instances, line losses and loss due to theft of electricity ranged between 50 to 80 % of the power being produced. NEPRA will provide details of these instances to NAB shortly.
In addition, in order to favor large landholders, electricity is being provided for tube wells at the flat rate of rupees 8 per unit. This is resulting in enormous loss to the exchequer and to the suffering of the general public, which is criminal.
It also became obvious during the course of the meeting that no single organ of the state was responsible for the mess that has been created in the power sector; nor is there any integrated energy management policy.
In view of this appalling state of affairs, Chairman NAB has issued instructions that must be followed strictly in letter and spirit. Gas will be provided in accordance with laid down priorities with the highest priority going to the public at large followed by efficient power producers.
An inquiry will be conducted by NAB to decide whether the decision to provide electricity to tube wells at a flat rate had a criminal aspect or not.
The final date of clearing overdue electricity bills is April 19th. All debtors, including governmental organisations must clear their dues or face criminal proceedings.
Chairman NAB held the view that re-appropriation of monies by ministries and organisations was unnecessary for clearance of electricity dues and instructed all governmental organisations to clear their dues forthwith.
Regulators were instructed to ensure that they perform their assigned role in accordance with the law; failing which NAB will proceed against individuals and or organisations.
The NAB will monitor the function of the entire power sector, including SSGC and SNGPL, to ensure provision of gas to the public at large, as well as maximum efficient power generation, also intended to bring relief to the public at large.

Courtesy www.dailytimes.com.pk

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