ISLAMABAD: The federal government is seeking adjustment of the provincial gover­nment departments’ power bills against the shares of provinces in the Nati­onal Finance Commission allocations thro­ugh the National Electricity Policy 2021.

“The agreed upon amounts owned by provinces and/or their departments to power sector shall be automatically adjusted from the share allocated to the respective province in accordance with the Article 160 of the Constitution and departmental budgets,” said the National Electric Policy 2021, endorsed by the Cabinet Committee on Energy (CCoE) on Thursday for presentation to the federal cabinet for approval.

The meeting of the CCoE, presided over by Planning Minister Asad Umar, considered summaries of the Power Division on the National Electricity Plan 2021 (NEP 2021) and Indicative Generation Capacity Expansion Plan 2047 (IGCEP 2047). The Ministry of Energy was advised to include the opinion of the Law Division on certain observations raised by the participants during the meeting.

A senior Power Division official told Dawn that the new policy also promises that the government would go for progressive elimination of loadshedding in all areas, including rural areas, for consumers who pay their electricity bills, in accordance with the legal framework of the country.

“The provincial governments shall also provide all necessary support to the power sector entities, inter alia, recoveries, bill collection, theft detection and legal procedures/actions,” the policy noted.

While disregarding the IGCEP 2047, the policy requires the Ministry of Energy to develop the future integrated energy plan on a sustainable basis. “In this regard, the corresponding transitional roadmap, structural adjustments and institutionalisation shall be effectuated latest by fiscal year 2022,” the policy noted.

It added that the developed integrated energy plan and the related principles for energy mix shall be reflected in the frameworks established under the NEP and in the investment and power acquisition programmes of the licensees. “This will enable achievement of the stated policy goals that would be aligned with Sustainable Development Goals 2030,” it added.

In discharging their respective functions, the government, regulator and all sector entities, including provincial entities will be guided by three key goals — access to affordable energy, energy security and sustainability — to overcome the challenges faced by the power sector and to devise future plans of action.

This means the government would encourage investments only “on least cost basis balanced with development in the underserved areas” and ensure “cost-reflective tariffs in transmission and distribution to the extent feasible”.

Published in Dawn, April 23rd, 2021