THE unprecedented increase in electricity tariff has caused resentment among the people who have taken to the streets. The fact is that even the people know nothing much will come out of their protests, but they do not know what else they can do. All they know is that using electricity has gone beyond the capacity of an ordinary citizen.

The power distribution companies (Discos) are said to be in a financial crisis due to increasing line losses amounting to Rs250 billion, whereas the circular debit has reached Rs2,300 billion. Bad governance, corrupt practices, apathy and inefficiency in Discos are the main reasons for the present crisis.

After the 2010 separation of the power wing from Wapda, 10 independent Discos, one transmission company, the National Transmission and Despatch Company (NTDC), and four generation companies were created under the Companies Ordinance 1984 (now Companies Act 2017) to improve the financial health of these companies.

It was done to bring drastic changes in their working, punitive actions against theft and corruption, and then to complete the process of privatisation of these companies. Huge expenditure was incurred on these companies, creating five more positions of chief engineers (BPS20) in each company, and hundreds of other BPS17-20 positions to decentralise the working.

Fending off sharks in the power sector

Market implementation and regula-tory affairs departments (MIRADs), headed by a director-general of BPS20, were formed in each company, and many new BPS-17-19 positions were created to explore new marketing and commercial avenues. Ironically, MIRADs still remain non-functional, employees continue to get salaries and perks, and the higher-ups concerned prefer to keep their mum.

Besides, boards of directors (BoDs) were constituted in each company by the federal government to monitor and supervise the activities of these companies. It is a matter of concern that instead of making appointments of members on merit and suitability as per the provisions of corporate governance rules, political workers having no experience and expertise in power or corporate sector have been inducted with the blessings of their political masters.

These BoDs have not contributed anything towards improving the system. Instead, they have destroyed the whole structure as most of them are more interested in their own benefits and the transfers and postings of their blue-eyed individuals.

These BoDs have never taken any action for controlling losses, improving recovery, and eliminating corruption. They have not introduced any policy to improve the working of power-sector companies. It is on record that the BoDs, in gross violation of the relevant rules, took decisions against the federal government’s policies and service rules, increased salaries, allowances and travel-daily allowances (TDA), which were beyond their jurisdiction, and even allowed bonuses despite the fact that Discos were, and are, in losses.

The caretaker prime minister must get rid of BoDs which are mainly responsible for the present power crisis and hike in tariff. Had they fulfilled their responsibilities honestly and in a professional manner, the financial conditions of Discos would have never deteriorated to this extent.

Fresh BoDs comprising professionals should be inducted through a compe-titive process. Similarly, all taxes included in electricity bills need to be withdrawn, and departments concerned should be authorised to collect them separately. All inflated bills should be withdrawn as well.

Special discount in tariff up to 300 units should be allowed to the consumers. Free electricity units to one and all must be withdrawn without any exception. Discos should curtail their expenses related to overtime, allowances, transport, medical and fuel. This way, millions of rupees could be saved monthly.

Video link meetings should be arranged instead of summoning officials to Islamabad on petty matters. The federal government should announce a solar policy to facilitate customers consuming up to 300 units. Banks should be encouraged to offer interest-free loans in this regard.

Maximum instalments of pending electricity bills should be allowed to facilitate the consumers. Online services should be offered by all Discos to their respective consumers, and officials should be held responsible for line losses and low recovery.

Unfair labour practices should also be curtailed and interference of trade unions in administrative matters must be curbed.

Tariq Majeed
Hyderabad

Published in Dawn, September 29th, 2023