Power sector reforms; “Dubai Group” gives presentation to CCoE

Business Recorder/27-08-2020

ISLAMABAD: The Power Division’s ‘Dubai Group’ is said to have given a detailed presentation to the Cabinet Committee on Energy (CCoE) on power sector reforms and update on different decisions taken previously, well-informed sources told Business Recorder. The ‘Dubai Group’ includes a former employee of Abraaj Group in KE; sources on condition of anonymity also told this correspondent. The Group recently sent a summary to the Prime Minister for appointment of Chairman of four or five Discos, mostly former Chief Executive Officers of Discos. Prime Minister’s Office, sources said, has raised questions on the proposed names of Chairmen and asked about their performance as CEOs of Discos.

On August 18, 2020, Special Assistants of the Prime Minister on Power Division and Coordination of Marketing & Development of Mineral Resources informed the Cabinet that the membership of Boards of five Discos had been finalized and shared with the Prime Minister’s Office. The reconstitution of the Boards of the remaining ten companies was in process. It was informed that the membership of the Boards had been divided into three broad categories, namely, experts/professionals, Ex-Officio, and notables from the community having links with people in the area. The Prime Minister directed that the remaining Boards should be finalized at the earliest and the reconstitution of all Boards of Discos be placed before the Cabinet for approval in the next meeting. The CCoE is also expected to approve additional power of 600MW for KE from national grid, totaling to 1400MW for 2021-22.

The CCoE will also discuss implementation status of following decisions: (i) privatization of power sector entities;(ii) governance reforms in power sector;(iii) report on the power sector submitted by the committee for power sector audit, circular debt resolution and future roadmap;(iv) alternative and renewable energy policy 2019;(v) implementation of 1124 KW Kohala and 700 MW Azad Pattan Hydropower projects and signing of project agreement under Policy for power generation projects-2002 and CPEC framework;(vi) deferment of quarterly, revised forward-looking monthly fuel adjustments and associated cash/ non-cash mitigation measurers ;(vii) circular debt reporting format; (viii) competitive marketplace for electricity development plan;(ix) capacity charges of government owned power plants;(x) synthetic financing to reduce capacity charges;(xi) fuel cost optimization of power plants and ;(xii) tax refunds of power sector.