Pakistan Business Forum (PBF) seeking government’s intervention to privatize all state owned DISCOs called for appointing professionals of the energy sector till the completion of the privatization process. Chairman PBF Punjab, Muhammad Naseer Malik said all 10 government-owned DISCOs would incur losses of Rs589 billion in the current fiscal year. He said that the main concern in this situation was ensuring that the DISCOs find a solution to cut their losses by curbing the theft of electricity which they claim was the reason behind their massive losses. Naseer Malik further said country already produces expensive electricity due to a combination of factors including high reliance on imported fossil fuels, inefficient energy mix, substantial transmission and distribution losses and chronic issues like circular debt and regulatory inefficiencies. Including an outdated infrastructure and inefficient power plants further exacerbate costs, while under utilisation of domestic resources such as hydropower and coal add to the problem.

In this regard PBF suggested for a short team measure to setup an Anti-theft Task Force, an assembly of officers from the armed forces, law enforcement agencies, district administration, and intelligence services. This task force would align itself with DISCOs suffering significant losses, specifically the Quetta Electric Supply Company (QESCO), the Peshawar Electric Supply Company (PESCO), the Sukkur Electric Power Company (SEPCO), the Multan Electric Power Company (MEPCO), and the Hyderabad Electric Supply Company (HESCO).  PBF also rejected the National Electric Power Regulatory Authority revised tariff for distribution companies  and Karachi Electric for the month of June after making fuel cost adjustment, a Rs3.33 per unit hike for them which would reflect in June 2024 bills. This move was expected to help them to raise about Rs29 billion ($101.4 million) of additional revenue this month.

“The authority has reviewed and assessed a National Average Uniform increase of Rs3.332 1/kWh in the applicable tariff for XWDISCOs on account of variations in the fuel charges for the month of April 2024,” said the NEPRA notification. “The above adjustment of Rs3.3321/kWh shall be applicable to all the consumer categories except Electric Vehicle Charging Stations (EVCS) and lifeline consumers,” it added. Apart from these companies, the power consumers in Karachi will pay an additional Rs2.68 per unit in June, raising the tariff to Rs10.1 per unit. The tariff will further increase to Rs3.11 per unit in July which would ease to Rs0.998 per unit in September 2024 under monthly fuel cost adjustment charges, according to the notification. PBF also added that one must understand high power cost was one of the key factors that lead to spiraling inflation. The electricity charges had increased by 58.8 percent until May this year.

Credit: Independent News Pakistan