CCoE hits back at NEPRA over circular debt controversy

Muhammad Moen

The Cabinet Committee on Energy (CCoE) hits back at the National Electric Power Regulatory Authority (Nepra) in defense of power division over a row on debt in the power sector and directs regulator to ensure the accuracy and integrity of data on circular debt.

The tussle between Nepra and Power Division heightened when the regulator reported to the Prime Minister that circular debt went up by about Rs 492 bn during the fiscal year 2018-19 at a monthly average of about Rs41-42 billion while challenging a claim of power division to Rs10-12 billion per month.

As a result, it also asked the prime minister to declare a National Power Emergency (NPE) and take drastic steps for scaling down about Rs1.93 trillion circular debt that was significantly higher than reported by the power division.

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The CCoE was informed on Friday that in order to maintain transparency and uniformity in data related to circular debt, a new format of reporting has been in consultation with NEPRA. The Committee also directed NEPRA to ensure the accuracy and integrity of data on circular debt.

Federal Minister for Planning, Development, and Special Initiatives Asad Umar chaired a meeting of the Cabinet Committee on Energy (CCoE) here in Islamabad. The CCoE reviewed the progress of the Central Power Purchasing Authority (CPPA) on the introduction of a new competitive trading-based energy market.

The Committee was informed that various actions required for the development and introduction of a new market system are being undertaken as per the give timelines.

The CPPA also briefed the CCoE on the next steps in the process. While emphasizing the timely completion of the reform process, the CCoE directed the authority to ensure that inputs from all the stakeholders including the current participants in the energy market are received.

The Committee also directed the concerned authorities to regularly report the implementation progress on the introduction of a competitive bilateral trading market system in Pakistan’s energy market.

The CCoE also apprised that sufficient stocks of all petroleum products were available in the country, however, due to the pandemic; petroleum products have witnessed a sharp decline in demand.

The CCoE asked the relevant Ministry to take the necessary steps to enhance the national storage capacity of petroleum products.