The Senate Standing Committee on Privatisation has raised concerns over delays in resolving key issues blocking the sale of government-owned power plants on the active privatisation list, Business Recorder reported.
At a meeting chaired by Senator Afnan Ullah Khan, lawmakers criticised the Power Division for what they described as limited progress in shifting away from the single-buyer market structure. The panel chairman questioned why future sale agreements were still being linked to guaranteed gas supply when gas supply is already limited and reservoirs are declining.
Briefing the Committee, Joint Secretary (Power Division) Ghulam Rasool said the main outstanding matter for the Nandipur Power Plant is the finalisation of a separate gas sales-purchase agreement with the supplier. He noted that power plants are currently receiving gas on an as-and-when-available basis, a framework tied to the Petroleum Division and not immediately replaceable.
The Power Division reported that eight of nine required actions for the Nandipur plant have been completed, while one remains pending. For the Guddu Power Plant, five actions have been completed and four are still unresolved. Guddu also faces issues related to tariff charges, loan settlements and transfer of land ownership from WAPDA. Although the plant receives gas from Kandh Kot fields, declining reserves continue to pose a supply-risk.
The Committee also reviewed progress on the proposed privatisation of Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO) and Gujranwala Electric Power Company (GEPCO). These three DISCOs form Batch-I of Phase-I, and the Financial Advisor’s reports are now under review by NEPRA, the Power Division, CPPA, ISMO, DISCOs and the Privatisation Commission.
Senator Afnan Ullah Khan acknowledged the efforts of the Privatisation and Power Divisions but reiterated that the single-buyer model remains unattractive for investors. He directed that representatives from NEPRA, the Director General (Gas) and ISMO be invited to the next meeting before the Committee takes up GENCO-related matters again.
