CCP says ‘monopoly’ of govt-owned power firms impediment in sector’s development

The Competition Commission of Pakistan (CCP) has said that the monopoly of government-owned companies is an obstacle in the way of the power sector’s development, reported 24NewsHD TV channel on Saturday.

In its report, the CCP has urged the government to enforce the CTBCM Model at the earliest.

It has asserted that the power-producing and distribution companies (Discos) should themselves sign agreements for the purchase and sale of electricity.

The CCP has also recommended doing away with the role of the Central Power Purchase Company.

Similarly, the commission has recommended separating production, transmission and distribution from each other.

It has emphasized that there is a need to upgrade the outdated system of electricity transmission on a war footing.

The report says that nine to 35 per cent line losses are reported from the government-owned distribution companies, and the only solution was to privatize these companies.

Similarly, the report has pointed out that the best-performing Discos make up for the losses suffered by those performing poorly.    

The commission has also called for immediately shutting down the poorly performing power plants in order to reduce the burden of capacity payment. “The Transmission Line Policy, 2015 must be implemented,” it has emphasized.

 

Reporter: Waqas Azeem