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Tag: Cabinet Committee on Energy

  • Overstayed consignments: ECC waives Rs700 million penal surcharges

    Overstayed consignments: ECC waives Rs700 million penal surcharges

    ISLAMABAD: The Economic Coordination Committee of the Cabinet (ECC) on Wednesday approved waiver of penal surcharges to the tune of Rs700 million on overstayed consignments at ports.

    The ECC meeting which chaired by Finance Minister Asad Umar approved a proposal of Federal Board of Revenue (FBR) to waive the accumulated penal surcharges of Rs700 million off against overstayed consignments at ports.

    The decision will enable importers to clear their overstayed cargoes and would also help reducing congestion at ports and bonded warehouses.

    On a summary of the Petroleum Division, the ECC approved gas supply to Tall and adjacent areas of district Hangu, Khyber Pakhtunkhwa.

    The Commerce Division gave a presentation about the significance of establishment of an Independent Insurance Regulator.

    The ECC directed the Commerce Division to expedite the findings of the Commission, already formed on the subject, for making informed decision.

    On a proposal of Petroleum Division regarding arrangements of additional 200 MMCFD of LNG from Qatar, the Committee directed Petroleum Division to carry out a comprehensive demand/supply analysis of LNG in the country, in consultation with stakeholders, including Law and Justice Division, and submit a summary to the Cabinet in this regard.

    Maritime Affairs Division briefed ECC about the progress on new LNG Terminal.

    The Finance Minister directed Maritime Division to expedite the process for establishment of new LNG terminal in view of the increasing demand for gas in the country.

    On the issue of the submission of Pakistan Steels’ revival business plan, ECC directed the Ministry of Industries to submit its proposals within the next fortnight.

    The Committee also accorded approval to the proposal of National Counter Terrorism Authority by granting it Technical Supplementary Grant of Rs133.156 million.

    Later, the Finance Minister also presided over a meeting of the Cabinet Committee on Energy (CCoE) and reviewed various proposals about gas losses and power recovery plan presented by Petroleum and Power Divisions separately.

    The Committee directed the Petroleum Division to take corrective measures to reduce gas losses.

    It asked the Division to submit monthly report on Unaccounted for Gas (UfG) on the pattern of the report on electricity losses presented by the Power Division.

    The Committee also directed both gas supply companies (SNGPL & SSGPL) to prepare a joint presentation, and present the same to Task Force on Energy before submission to CCoE in its next meeting.

    In order to make recovery from the defaulters, CCoE directed Power Division to implement the Electricity Act in letter and spirit by disconnecting the connections of defaulters.

    The Committee was briefed by the Power Division about the status on Efficiency Tests Report for Independent Power Producers (IPPs).

    It was informed that the mandatory test had been carried out for all the seven units. The data analysis had been completed for five units while the same with regard to the remaining two units was presently underway.

  • Power theft cases: 20,712 FIRs lodged; 1,909 arrested

    Power theft cases: 20,712 FIRs lodged; 1,909 arrested

    ISLAMABAD: The Cabinet Committee on Energy (CCoE) has been informed that around 20,712 FIRs were registered and 1909 arrests were made in electricity theft cases.

    Finance Minister Asad Umar chaired the meeting of CCoE on Wednesday.

    The Power Division gave the meeting performance update on efficiency improvement and control of theft.

    Regarding control of theft, CCoE was apprised that during the period from October 13, 2018 to February 22, 2019 as many as 20,712 FIRs were registered and 1909 arrests were made.

    Detection bills charged amounted to Rs. 1,278.305 million while the amount of detection recovered was Rs 537.120 million.

    The CCoE appreciated the Power Division’s effective drive for recoveries and theft control. The meeting also noted the progress shared by the Power Division on proposed plan/measures to bring down power sector losses.

    The meeting was informed that total collection from November 2017 to January 2018 stood at Rs 203,953 million which rose to Rs. 243,642 million in the same period in FY 2018-19, showing net increase of Rs 39,689 million.

    Improved recovery from consumers and decrease in losses significantly contributed to the enhanced collection, the meeting was informed.

    The committee approved proposals from Power Division providing for all future Renewable Energy investments to be treated in line with the RE Policy 2019 that envisages a framework consistent with the current international market norms and greater consumer benefits.

    The Power Division informed that draft RE Policy 2019 was currently in circulation for comments by stakeholders and would be presented to the CCoE as soon as such comments were finalized.

    All those projects which have been granted LoS by AEDB, shall be permitted to proceed towards the achievement of their requisite milestones as per the RE Policy 2006.

    However in those cases where more than a year has elapsed since determination of tariff by NEPRA, their tariff would have to be reviewed by NEPRA as per policy.

    Petroleum Division apprised the CCoE about findings of the committee probing into the matter of inflated gas bills. It was also informed that report of audit being conducted in this matter will also be shared with the CCoE.

  • Cabinet decides independent audit to check inflated gas bills

    Cabinet decides independent audit to check inflated gas bills

    ISLAMABAD: The Cabinet Committee on Energy (CCoE) on Wednesday decided to conduct an independent audit to check inflated bills of gas.

    Finance Minister Asad Umar chaired meeting of the CCoE.

    The meeting was especially called on the instructions of Prime Minister Imran Khan to look into the matter of inflated gas billings to the consumers.

    The committee decided to conduct an independent audit of the billing for December 2018 through external auditors in addition to the inquiry regarding excessive billing already conducted by the Petroleum Division.

    The reports of both the inquiry and the independent audit would be submitted to CCoE.

    Prior to that Secretary Petroleum Division gave a detailed presentation to the Committee on the recent billing exercise of the gas sector.

    Chairman OGRA and MD SNGPL also gave their input in this regard.

    The meeting was informed that the consumers are billed according to the slabs in which they fall, in accordance with their consumption.

    The Secretary Petroleum Division said that following the complaints of a large number of consumers an inquiry has already been launched to look into the matter.

    The inquiry would look at the issue comprehensively from all the different angles.

    The Secretary also briefed the Committee that there has been an overall increase of 8% in the consumption pattern of the consumers falling in the lowest consumption slab.

    He also said that out of the total 6400,000 gas consumers only 92,000 that fall in the 6th and 7th (highest consumption slabs), have been affected by high gas bills.

    It was also pointed out by chairman OGRA that during the month of December the domestic consumption of gas doubles which has changed the pricing slabs for many consumers.

    However, she also suggested that the data for the last two months may be looked into to find any anomaly.

    The meeting also discussed the issue of Gas theft, action taken against illegal practices and the determination of the unaccounted for Gas (UFG) loss benchmark and directed M/o Energy to address the issue.

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