SPEAKING at a panel discussion on ‘Pakistan’s Power Policies – ensuring Access and Affordability” on Wednesday, prominent speakers and experts floated proposals that need to be considered by policy and decision-makers.
Taking cognizance of the menacing levels of the circular debt and line losses/thefts, they proposed privatization of the sector, installation of pre-paid electricity meters and making NEPRA truly independent.
There is no denying the fact that at Rs. 2.4 trillion, the circular debt has become unmanageable and steps taken by the previous as well as the incumbent governments have proved only transitory in nature.
It is also alarming that transmission and distribution losses stood at 19% while 10 to 12% is lost further on account of power theft. How can the system remain sustainable when there are cumulative 30% losses and commitments to provide electricity at reduced rates turn into hollow claims when the Government decides to compensate for the losses just through increasing the already higher tariff? Losses on account of transmission/distribution as well as pilferage can significantly be brought down if we make required investment on modernization and upgradation but understandably this is a time-consuming process in view of the financial position of the country.
However, theft can be reduced to a negligible level by holding the corrupt officials accountable but regrettably all campaigns against corruption were thwarted by vested interests.
Under these circumstances, the proposal to privatize the entire power sector makes sense. Alternatively, discos should be handed over to the respective provinces that would be in a better position to revamp the sector and have the paraphernalia to take action against rampant theft.
Installation of pre-paid meters can also help check the theft and a beginning should be made not from efficient discos but those where instances of theft are highest.
