ISLAMABAD: The Power Division has yet to finalize its recommendations for continuing the economic (recovery-based) load shedding policy through an amendment in NEPRA regulations, as comments on the draft summary remain incomplete, Newzshewz has reliably learnt.
This is one of the overdue tasks assigned by the Prime Minister to the Power Division, aimed at removing legal obstacles to unscheduled power load shedding across the country.
NEPRA opposes the government’s recovery-based load shedding policy, stating it contradicts the regulator’s governing law, and penalties have already been imposed on power companies. The issue has been raised during multiple public hearings. In one such hearing, NEPRA Chairman Waseem Mukhtar said, “The regulator is acting in accordance with the current law. If the government disagrees, it should amend the law.”
The Power Division stated: “Meetings with stakeholders have been held to address immediate concerns. In-house deliberations on the proposals have been completed. A summary was circulated on August 8, 2024, but responses are still awaited. Once received, the summary will be submitted to the Cabinet.”
On the issue of operationalizing the competitive electricity market and finalizing recommendations for optimal wheeling charges and related modalities — including the gradual reduction of standard costs, annual caps, and availability of surplus capacity — the Power Division noted that the matter requires extensive stakeholder consultation to arrive at a sustainable and implementable solution.
According to the Division, since this initiative has implications for consumers, several rounds of discussions have been conducted with industry representatives and technical experts. The Minister for Power has constituted a Technical Committee to deliberate on the optimal charge.
“Since this will affect future demand projections, the ongoing IGCEP will need to account for its potential impact,” sources quoted the Power Division as saying. The Division has requested additional time for further deliberation.
Regarding the new electricity subsidy mechanism for BISP beneficiaries, a pilot project was proposed for 0.5 million already-verified beneficiaries. The nationwide rollout is expected in January 2025.
As per the meeting minutes dated January 30, 2025, the Power Division informed that key issues still need to be addressed. These include verification of beneficiary data by BISP and the inability of DISCOs to confirm registered mobile numbers with PTA before issuing e-vouchers. Additionally, the State Bank has expressed reluctance to modify the commercial banking system to accommodate the subsidy scheme.
Instead of immediately implementing complex verification processes and banking changes, the Power Division has proposed a phased implementation. In the first stage, electricity bills will clearly show the subsidy and actual cost of power. A revised subsidy scheme, with new PMT cut-off levels, will be designed to secure support from the Ministry of Finance and the World Bank.
This proposal will be shared with the Minister for Power for approval before finalizing a detailed plan for direct subsidy disbursement to BISP beneficiaries.
Sources also confirmed that WAPDA has been directed to submit revised PC-Is for the Diamer Basha Dam Project, Mohmand Dam Project, and Dasu Hydropower Project. The revised PC-I for the Dasu project has been submitted to the PD&SI Division and approved, while those for Diamer Basha and Mohmand are under review by the Ministry of Water Resources. Further steps and timelines will be announced following approval.
On the matter of GENCOs employees, the Power Division shared a list of approximately 1,300 technical employees with DISCOs for absorption. Office orders for their transfer were issued after due formalities. However, a directive from the PMO on December 29, 2024, prohibited the absorption of GENCO employees into DISCOs, ordered the repatriation of those already absorbed, and called for the creation of a surplus pool with voluntary retirement options. The Power Division conveyed these directives to GHCL for implementation.
Subsequently, the Prime Minister directed the Minister for Economic Affairs Division (EAD) to review the case of surplus GENCO employees and explore alternative absorption options in consultation with the Power Division. A meeting on the matter was held on February 4, 2025, in the office of the Minister for EAD, attended by officials from the Power Division, CEO GHCL, and a representative of the Taskforce.
The proposal is now under review by the Minister for Economic Affairs Division and the PMO. Once further instructions are received, the Power Division will take appropriate action.
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