ISLAMABAD: The Power Division has temporarily shelved the net metering tariff rationalisation plan, citing public backlash following a recent surge in electricity prices. Initially directed by the Prime Minister to submit the plan by May 10, 2024, the deadline was extended multiple times, with the latest being September 30, 2024.
According to sources, the Power Division informed the Prime Minister’s Office that given the current sensitivity surrounding electricity tariffs, the plan will be revisited at a more suitable time, without providing a specific date. In-house deliberations have been completed, and the proposal is ready to be presented once approval is granted for reform implementation.
Regarding the restructuring of the National Transmission and Dispatch Company (NTDC), a committee led by Minister for Economic Affairs, Ahad Khan Cheema, is reviewing recommendations from a lead consultant. The deadline for these proposals is October 15, 2024.
Additionally, updates on the operationalisation of a Competitive Electricity Market are ongoing, with the Cross-Sectoral Committee working on wheeling charges and reducing stranded costs.
Efforts to convert three Chinese Independent Power Producers (IPPs)—Sahiwal, Port Qasim, and Hub— to Thar coal are also underway, with discussions between Pakistan and China initiated in July 2024.
Regarding privatisation, the Cabinet Committee on Privatisation (CCoP) approved the sale of IESCO, FESCO, and GEPCO in the first phase, with LESCO, MEPCO, and HAZECO to follow. Concession agreements were approved for HESCO, SEPCO, and PESCO, with the World Bank advising on the process. This task is set to conclude by January 1, 2026.
World Bank’s Simon J Stolp will visit Pakistan from September 18-20, 2024, to assess ongoing energy sector reforms and future priorities.
Story by Mushtaq Ghumman
