CCI likely to approve gas supply to localities around gas fields

The Council of Common Interests (CCI) is likely to approve the much-awaited supply of gas to the localities/villages falling within a five kilometer radius of the gas producing fields, it was reliably learnt.

Official sources at the petroleum ministry, on the condition of anonymity informed that the federal government has called a meeting of CCI on Tuesday, May 2, 2017 to discuss a 12 point agenda, including amendments in the NEPRA Act to bring the power sector regulatory authority ostensibly under the administrative control of the power ministry. They said the meeting will take up summaries/proposals of provincial governments of Balochistan, Sindh, and Khyber Pukhtunkhwa as well as of various ministries including the Inter Provincial Coordination (IPC), water and power, petroleum and natural resources, cabinet and finance divisions for discussion and necessary approvals. The four chief ministers have been requested to attend the meeting as official invitations have been sent to the provinces, ministries and divisions, sources said.

The sources said the 31st meeting of CCI on Tuesday, which is to be presided over by Prime Minister Nawaz Sharif, is likely to submit its approval to a summary of petroleum ministry, seeking gas supply to localities and villages which fall within a radius of 5 km of the gas producing fields across the country.

Currently, two public sector companies i-e Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipeline Limited (SNGPL) are supplying gas in the country through their extensive network of pipeline, altogether serving millions of domestic consumers.

It is also learnt that the planning ministry has supported the proposal, whereas the finance ministry was of the view that such schemes may be executed according to the availability of funds. The Sindh government is of the view that the federal government may pay the entire cost whereas Balochistan and Khyber-Pakhtunkhwa suggested that the cost should be borne by the gas utilities. And, the government of Punjab was of the view that per-consumer cost criteria should be revised, before discussing cost-sharing with the provinces.

According to the CCI agenda, the CCI will take up amendments in the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, settlement of net hydel profit (NHP) issue between WAPDA and the government of Punjab, draft bills for the establishment of the National Meteorology Institute of Pakistan (NMIP), National Water Policy, National Forest Policy, 2015, short supplies of water in Pat Feeder and Kirthar canals, inquiry into corruption charges of Kachhi canal, supplies of gas to localities/villages within a 5 km radius of gas producing fields, resolution of energy problems of Balochistan province/enhancement of absorption capacity, establishment of fiscal coordination committee, implementation of Kazi Committee Methodology (KCM) for the calculation of NHP and the allocation of 1200 cusecs (650.5MGD) additional water for Karachi city (K-IV project), and senior citizens privileges as well.

The sources said that the Pakistan Muslim League-Nawaz (PML-N) government might face music in getting an approval from the CCI to put an end to the sovereignty of National Electric Power Regulatory Authority (NEPRA). They said PML-N government might face stiff opposition from the provinces of Sindh and Khyber Pakhtunkhwa over the proposed amendments to clip the wings of NEPRA, which is an autonomous body. They said the prime minister, chief minister Punjab, and the federal minister for water and power are annoyed with NEPRA over various issues pertaining to tariff determination and for failing to reduce the transmission and distribution losses for each power distributing company (DISCOs) etc. They said the government wanted to get CCI’s approval over the amendments in NEPRA Act primarily to make it mandatory for NEPRA to implement government’s instructions. However, so far, two provinces, Sindh and KP have opposed to any alteration in the NEPRA Act, which, as a result, will compromise the independence of the regulator, sources said.

It is worth mentioning here that after the Panamagate verdict by the Supreme Court, the PML-N government seems to be in a hurry to announce the ambitious plans/schemes so that it can fight the elections with something concrete at its disposal. The CCI also provides an opportunity to other ruling parties of the four provinces to vent out concerns regarding development and other matters of great importance.

Ahmad Ahmadani
Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at [email protected].

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