Senate Standing Committee on Power Discusses NTDC Restructuring, Privatization, and Energy Issues

ISLAMABAD: The Senate Standing Committee on Power, chaired by Senator Mohsin Aziz, convened today at Parliament House.

The meeting addressed a public petition filed by the General Secretary of the All Pakistan NTDC Engineering Association (APNEA) regarding the government’s steps for winding up or trifurcating NTDC into smaller units. The Secretary of the Ministry of Power explained the restructuring plan to make NTDC smarter and more efficient. He added that NTDC engineers will remain within the National Grid Company, overseeing internal operations, while project execution and energy infrastructure development will be managed by a separate government-approved company.Power Tariff Reduction approved in Electricity Bills January 2025

During the meeting, Senator Mohsin Aziz also questioned the benefits of separating WAPDA, pointing out that consumers have not seen tangible improvements. The Secretary of M/O Power responded that while generation without transmission is a challenge, it is not the sole issue. Committee members, concerned about electricity costs, recommended a briefing by WAPDA on its future direction.

The Secretary of M/O Power also reported that discussions with five IPPs concluded, and operations were halted as of 30 September. One IPP was transferred to government ownership, while the remaining four were shut down. The Committee was also updated that Bagasse had been aligned with imported coal due to the absence of a notified price, and dollar-indexation mechanisms were eliminated. A fixed price of Rs. 4,000 per 100 units of bagasse was set. Senator Mohsin Aziz suggested that details on the remaining projects be provided at the next meeting.

Further, Senator Aziz raised concerns about privatization’s impact on efficiency, to which the Secretary confirmed the privatization of better-performing entities, such as IESCO, FESCO, and GEPCO. Improvements in recovery rates and loss reductions were noted, with further steps pending the financial advisor’s analysis.

The Committee also discussed CEO and management appointments in DISCOS, noting that there is no specific age limit. The Secretary confirmed that the boards had been informed of the end of their tenures and that a new board is being appointed. The Committee recommended a one-month timeframe for these appointments. Senator Aziz also requested a report on the SEPCO Executive Engineer’s removal due to corruption, seeking details of the recommendation within 15 days.

The meeting was attended by Senators Rahat Jamali, Manzoor Ahmed, Muhammad Aslam Abro, Shibli Faraz, the Secretary, and Additional Secretary of the Ministry of Power, along with senior officials from relevant departments.