Short, medium and long term solutions for power sector.

• Author: Nisar, Ahsan

Byline: Ahsan Nisar

Pakistan's extremely blessed to have abundance of coal, natural gas and water resources and all these could very well be the main fuels at different points of time, now and in future. But, it is also true that Pakistan has been faced with power crises and its multiplier effect on the economy for decades. There are basically two main issues: Transmission and Distribution (TandD by DISCOS) and generation.

Solutions for the two divisions are very different given, of course, the distinct nature of the two businesses. The solution to take care of the generation is a bit more complex and strategic/long-term in nature; while the issues of Power Distribution companies (DISCOS) are more operational/managerial in nature and are fixable in the short to medium term. The element of large funding requirement, however, in both the cases, is common.

The primary requirement in TandD is to fix the structural and the management issues which could be pursued in two stages/phases. In the first stage, there's serious need to take these entities out of the clutches of National Transmission and Dispatch Company Limited (NTDC), undertake certain structural changes, and provide them independence in terms of management and operations.

Practically housing all these entities under NTDC, albeit administratively, makes the whole business of NTDC ungovernable. There's genuine need of capacity building in National Electric Power Regulatory Authority (NEPRA) like rest of the power sector.

Secondly, there must be 'tailor-made solution' for each entity; 'one-size-fits all strategy' won't work. Every DISCO has its own unique features and specific issues; generic or overlapping items/issues will be very few. The process of privatization remains the key and must be handled in the most professional and transparent way.

The Privatization Commission has to ensure active participation from interested parties through specific roadshows in selected countries/regions, particularly China (and other Asian countries), Turkey, Saudi Arabia, the UAE, Qatar, London, USA, etc., on a one-on-one investor basis. Only direct selling will ensure maximum extraction of value.

While suggesting any solution on the generation front, one need to keep affordability (costing/pricing) and availability (net thermal efficiency/usage) of resources/electricity in view. There are no quick fixes to this problem at hand but surely some options could help in addressing this issue quicker than...