By Asad Cheema
ISLAMABAD: Leader of the business community and former President ICCI Shahid Rasheed Butt on Thursday said fundamental changes are
needed in the power sector otherwise, it will bankrupt the country. He said that state-run power companies have become a liability while the experience of privatization has left much to be desired therefore establishment of microgrid stations on cooperative basis
should be considered.
Shahid Rasheed Butt said that power production is beating demand, therefore, the under construction projects which will generate very costly electricity should be put on hold or slowed down. He said that on one hand the government is involved in negotiations with
IPPs to reduce the cost of electricity, current production is well above demand while new projects are being completed rapidly, which is amazing.
Discos are rife with corruption, inefficiency, political interference and misdirected preferences but the government is neglecting reforms and they are allowed to have monopoly in the power market which is against the rights of consumers, the business leader added.
He said that the government should reconsider the plan to boost power production to 75 thousand megawatts by 2030 as there is little demand while the increased power generation will add to losses and circular debt which has already surpassed Rs2.25 trillion.
Shahid Rasheed said that consumers in Mumbai have the right to choose from three power providing companies, Singapore his six power companies creating a competitive environment while the electricity market has been monopolized in Pakistan providing an opportunity to the bureaucracy to exploit consumers. He informed that electricity cooperatives generate 13 percent of the total power production in the US; they own 42 percent transmission line and pay 22 billion dollars in revenue.
The government should consider the cooperative power generation model and allow housing schemes to generate their own affordable electricity to bring an end to loot and widespread plunder in the power sector in the garb of investment, he added.
