ISLAMABAD: Experts in the inaugural session of a conference on energy reforms organized by Institute of Policy Studies were unanimous that the endemic energy crisis was a product of multiple factors of structural, financial, policy, but most important of all, governance and management failures leading to rampant corruption and marginalization of institutions.
It would not be possible to address the crisis without high level national commitment and resolve in pushing through across the board reforms.
The inaugural session of the full-day conference themed “Towards an Energy Secure Pakistan: Road to Recovery & Sustainability – Agenda for Action” was addressed by Mirza Hamid Hassan, chairman IPS Tawanai Program and former secretary water & power, Dr Gulfraz Ahmad, former secretary for petroleum & natural resources, Dr Saeed Jadoon, head of reservoir engineering at OGDCL, Salman Azad, director, Punjab Power Development Board, and Khalid Rahman, DG-IPS. The key discussants included Usman Amin-Ud-Din, former minister for petroleum & natural resources, and Salahuddin Rifai, senior energy consultant.
The speakers deplored that there was no effective body or mechanism for energy administration at the national level. The roles were divided in three water tight ministries of petroleum & natural resources, water & power, and planning. There was no overarching institutionalized arrangement for coordination and optimization of synergies and efficiencies.
Underlying the need for a single energy ministry to tackle the crisis the experts viewed that effective coordination was not possible through committees as no cabinet member can bear on the roles of another as defined in the Rules of Business. A single energy ministry is the need of the hour, they urged.
Dr Gulfraz Ahmad said that the top-most among the long list of causes of the worst energy crisis the country has ever faced was lack of total merit and transparency in planning the energy projects. He revealed that there was talk about start of Diamer-Basha dam but practically a new feasibility was now needed to be financed by USAID as the previous one was not convincing enough for international donors and lenders.
He said that modern approach encourages privatization of utilities and their autonomous regulation by protecting interests of all stake-holders: consumers, investors and governments. Pakistan started off with a plan of privatizing utilities and setting up regulatory bodies like NEPRA and OGRA. Unfortunately, it neither privatized utilities nor allowed autonomy to regulatory bodies and made a mess of energy sector which to stay afloat requires massive recurring bailouts without fixing the real source of hemorrhage.
He further said that a regulatory body is a semi-judicial entity and people with professional knowledge and impeccable integrity are required to be charged with responsibility of regulating the crucial sector of national economy and security. It is embarrassing to hear the scale of corruption running close to a hundred billion rupees against a former chairman of a regulatory body. Unlimited greed and unbridled corruption continues to stoke the crisis. As a consequence all energy related institutions including OGDCL, WAPDA, SNGPL, SSGCL, DISCOs have repeatedly been thrust with incompetent, non-deserving and influence bearing individuals in high capacities.
There is no professional core strength left that can provide critical mass for recovery unless now inducted.
Dr Ahmad went on to say that being awash by watershed of the world’s tallest mountains, Pakistan is water starved bordering on the margin of drought. Eight-seven percent of the water that flows down the rivers falls into the sea in only seventy days annually. We have failed to build dams to store water and generate cheap electricity. The consequences are haunting us now, he lamented.
He said that from 2000 to 2008 while power demand consistently grew around 6.5 per cent a year, the generation grew less than half that. System redundancies were consumed and shortages kept increasing. Those responsible for this neglect need to be made accountable for future lessons.
No large dam or hydroelectricity plant has been added since 1970s despite untapped potential of over 45000MW. The synergistic balance that existed between hydel and thermal power generation up to 1990s was upset when around 5000MW of thermal capacity was added through IPPs in the late 1990ss. The power became expensive and water storage precarious, he added.
Khalid Rahman said that during 2008 to 2013 period the then opposition parties that now sit in the government were very vocal on energy crisis and had contested the elections with the promises – among others – of providing the people speedy and sustainable relief in this extremely important arena. Accordingly, one finds in the election manifesto of the PML-N promises to undertake initiatives such as establishment of a ministry of energy & natural resources by integrating ministries of petroleum & natural resources and water & power. The manifesto also promises to come up with comprehensive reforms in regulatory mechanisms and organizations involved in this regard such as NEPRA, OGRA, GENCOs and DISCOs; and measures for permanent elimination of the circular debt; setting up of Thar coal fields, and according high priority to importing gas through pipelines, etc. In this backdrop, it would not be wrong to say that one of the hopes and aspirations that the nation attached with the new governments taking reins in Pakistan as a result of May 2013 elections, was a quick reprieve in the energy related crisis.
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