Senate committee seeks report of irregularities in Sahiwal power plant

ISLAMABAD: The Senate Standing Committee on Power Division has sought a report about alleged irregularities in the Sahiwal power plant’s coal procurement.

Minister for Power Division Sardar Awais Ahmed Khan Leghari on Wednesday assured the Senate Standing Committee on Power Division that existing net metering consumers would continue under their current contracts until expiration.

The committee, which met with Senator Mohsin Aziz in the Chair, was further apprised that the consumers who installed solar panels without net metering would remain unaffected.

The minister said the ECC approved the policy, but cabinet approval was pending.

He emphasized that solar policy changes were necessary to avoid purchasing expensive electricity at public expense, adding that import duties on solar panels remain unchanged.

The minister said currently, 283,000 solar consumers generate 4,000 MW. The new policy aims to lower solar system costs, making them more accessible.

The Committee also discussed the new net metering policy under which the government will purchase electricity from new solar consumers at Rs10 per unit instead of Rs27.

However, electricity consumed between 6 PM and 10 PM will be charged at Rs45 per unit. Without this policy, electricity prices could rise by Rs3.50 per unit.

The Senate Standing Committee was briefed on the coal procurement of Narowal Coal Power Plant (a Govt. owned IPP) allegedly at the rate of Rs75000/ton, whereas the market price of coal is Rs40000/ton.

However, during the briefing, it was revealed that the issue was not about the Narowal Coal Power Plant but the Sahiwal Coal Power Plant.

It was also clarified that this plant is not a government-owned Independent Power Producer (IPP). The Committee expressed concern over the incorrect information and asked for a detailed report to ensure transparency and accountability.

The Ministry further informed regarding the ongoing IPP’s negotiation and the timeline of expected relief for the public and industrialists. Pursuant to the efforts of Task Force, Power Purchase Agreements with 6 IPPs have been terminated, revised agreements for tariff reduction have also been initiated with 8 Bagasse Power Plants and 14 IPPs of Power Policy 1994 & 2002.

As per the relevant summaries of the Ministry of Energy (Power Division), the early termination of 5 IPPs would result in overall savings of around Rs 411 billion.

Moreover, savings on account of revised tariff terms with 8 Bagasse Power Projects and 14 IPPs of Power Policy 1994 & 2002 are estimated at around Rs 238 billion & Rs 922 billion, respectively over the remaining life of these projects.

The Chairman expressed concern over the remaining 75 IPPs, questioning the delay despite the formation of a dedicated Task Force to expedite the process. He emphasized the need for swift action to ensure timely relief.

The Ministry informed the Committee that negotiations are being conducted individually with each IPP, which requires time. However, the Ministry assured that the process is expected to be completed by April or May, with a likelihood of finalization by the last week of April.

The Committee has sought detailed information, mentioning that, to date, the authorities have failed to provide the commencement date of these projects, the final price, and the local manufacturing cost of the plant.

The meeting was attended by Senators Syed Shibli Faraz, Mir Dostian Khan Domki, Manzoor Ahmed Kakar, Haji Hidayatullah Khan, Asad Qasim, Minister For Energy (Power Division) Awais Leghari and other concern Officers.