1. IMPACT OF 18th AMENDMENTS ON ENERGY SECTOR GOVERNMENT OF THE PUNJAB
Asad Rehman Gilani
Secretary
ENERGY DEPARTMENT
GOVERNMENT OF THE PUNJAB
29th September, 2015

2. VISION
To utilize all available sources in the province to provide affordable energy to all segments of provincial economy through increase in generation and conservation since.
“EVERY WATT COUNTS”

3. NATIONAL POWER SECTOR
Peak Generation achieved in July 2013: ~ 16,000 MW; (IPPs and Gencos produce through which source?)
Source: State of Industry Report NEPRA

4. NATIONAL POWER SECTOR POWER CONSUMPTION
* Graph based on Pakistan Yearbook

5. NATIONAL POWER SECTOR
Current national power shortage is around 5000 MW.
Check figures and quote source on national power shortage
Source: Private Power & Infrastructure Board – Supply & Demand Position 2020

6. Major issues of power sector
Expensive Energy Mix – Affordability
Inefficient Generating Units
Circular Debt
Aging Transmission and Distribution Network
Power Theft
Non-Recovery of Bills – Governance Issues
Source; State of Industry Report NEPRA

7. SITUATION IN PUNJAB
Contains 60% of all industry with more than 48,000 units.
Consumes 68% of the total national power generation.
Currently faces more than 3500 MW of shortfall.

8. MANDATE Legislation, policy formulation and sectoral planning.
Administration of Electricity Act.
Facilitation to private investors
Power generation development.
Close coordination with federal government and exploring companies for OIL & GAS exploration.

9. POLICY FRAMEWORK
Federal Power Generation Policy Provides a framework for the development of power plants in public and private sector including joint venture mode.
Federal Renewable Policy Provides framework for renewable projects.
Punjab Power Policy 2006 (amended 2009)

10. ENERGY DEPARTMENT (AFFILIATES)
CHIEF ENGINEER (POWER)
PUNJAB POWER DEVELOPMENT BOARD
QUAID-E-AZAM SOLAR POWER COMPANY
PUNJAB POWER DEVELOPMENT COMPANY LTD
ENERGY DEPARTMENT
CENTRE FOR ENERGY RESEARCH AND DEVELOPMENT
PUNJAB POWER MANAGEMENT UNIT

11. IMPACT OF 18th AMENDMENTS IN CONSTITUTION
(POWER /ELECTRICITY)
Amendment XVIII (the Eighteenth Amendment) of the Constitution of Pakistan was made by Parliament ~ 20th May, 2010
Removal of concurrent list and inclusion of subject of electricity in Federal list which simply means that provinces are no more empowered to legislate on electricity.
Article 157(1) was partially amended by adding a proviso ~ merely reassurance that the Federal Government shall not take a decision to construct a hydro-electric power station in any province without consultation of the provincial government concerned.
Insertion of new sub-section 157(3) which provides a dispute resolution mechanism through the Council of Common Interest .

12. IMPACT ON ELECTRICITY GENERATION
There is generally a misconception that provinces have been given more power to generate electricity whereas such powers were resting with the provinces prior to 18th amendment.
With the abolition of concurrent list and inclusion of “Electricity” in the Federal List , the provinces now lack the power to legislate on electricity which is sometimes essential to make laws/rules/regulations for implementation of the power projects
Provinces are now dependent on Federal Government to make amendments in Power Policy
Provinces are also dependent on Federal Government on issues like safety of electrical installation/system and energy conservation

13. ARTICLE 157 OF CONSTITUTION
157. Electricity: (1) The Federal Govt. may, in any Province, construct or cause to be constructed hydroelectric or thermal power installations or grid stations for the generation of electricity and lay or cause to be laid inter-provincial transmission lines
provided that the Federal Government shall, prior to taking a decision to construct or cause to be constructed, hydroelectric Power stations in any province, shall consult the provincial government concerned

14. ARTICLE 157 OF CONSTITUTION
157 (2) The government of a province may:
To the extent the electricity is supplied to that province from the national grid, require supply to be made in bulk for the transmission and distribution within the province;
Levy tax on consumption of electricity within the province;
Construct power houses and grid stations and lay transmission lines for use within the province; and
Determine the tariff for distribution of electricity within the province;
In case of any dispute between the Federal Government and a provincial Government in respect of any matter under this article, any of said governments may move the Council of Common Interests for resolution of the dispute.

15. IMPACT ON ELECTRICITY GENERATION
CCI has resolved the issue of interpretation of Article 157(2) of the Constitution after 18th amendment and the provinces are empowered :
To enter into the business of bulk purchase of electricity and its distribution.
To legislate on the subject of electricity under sub-clauses of 157(2).
To develop any project without limitation of size through private sector or PPP mode.
To issue LOI, LOS to private sector and enter into agreements and contracts.
Federal Government has agreed to remove any ambiguity through amendments in NEPRA Act, 1997 and Electricity Act, 1910 but still enabling laws have not been amended.

16. IMPACT OF 18th AMENDMENTS IN CONSTITUTION
(MINERAL & NATURAL RESOURCES)
A new sub-section in Article 172 of the constitution, the mineral and natural resources within the province now vests “jointly and equally” in that province.
In Article 172, after clause (2) amended, the following new clause shall be inserted, namely: —
“(3)      Subject to the existing commitments and obligations, mineral oil and natural gas within the Province or the territorial waters adjacent thereto shall vest jointly and equally in that Province and the Federal Government.”.
Enabling laws and policy to define the roles of Provincial and Federal Government have yet to be put in place

17. PUNJAB GOVERNMENT INITIATIVES IN PUBLIC SECTOR
Sr. #
Name of the Projects
Projects  Initiated
Capacity  (MW) 1
Small HPP at Marala Sialkot, Deg out fall , Chianwali and Pakpattan 4 20 2
2x55 MW Coal based Power Project near Industrial Estates Lahore and Faisalabad.
220 3
Coal based Power Project near load centres in Punjab (Lahore, Sialkot, Faisalabad, Multan, (150MW Each)
600
Biomass Based Power Project at Chak Jhumra 5
Solar power project at Lal Soharna Bahawalpur
100 6
RLNG Project at Bhiki
1200
Sub Total 13
2160

18. PUNJAB GOVERNMENT INITIATIVES IN PRIVATE SECTOR
Sr. #
Name of the Project
Projects  Initiated
Capacity  (MW) 1
Small Hydropower Projects (Raw Sites) 18
257 2
 Coal Based Power Projects 50 MW (Local Coal) 4
200 3
Small Coal Fired Power Projects MW (Imported) 6
900
Coal Based Power Projects (Imported)
5280
 Solar Power Projects
1290
Sub Total 34
7927

19. CONCLUSION
The dichotomy of jurisdiction to legislate and power to execute has been further enhanced by 18th amendment which is creating host of administrative and legal issues
The legal and policy issues already initiated in year 2011 needs to be settled and finalized by the Federal Government at the earliest so that the provinces may discharge their constitutional obligations.

20. Thank You