PD proposes adjustment of Gencos’ surplus staff

The Power Division has proposed adjustment of surplus employees of Generation Companies (Gencos) and resolution of financial issues of their retired employees.

The Cabinet Committee on Energy (CCoE) during its meeting held on September 10, 2020 decided immediate closure of certain power plants/units of GENCOS having aggregate capacity of 1,796 MW.

Pursuant to the decision, GENCOs had to approach NEPRA for modification in their respective Generation Licences (Licencee proposed modification-LPM) to reduce their capacities. With such modification in the Generation Licences, tariffs of power plants decided for closure shall be cancelled and resultantly GENCOs would cease to get capacity charges in lieu of 1,796 MW units.

GENCOs are paying salaries and pension out of their Capacity Purchase Price (CPP). Once CPP of plants meant for immediate closure is no more available, GENCOs would not be in a financial position to pay salaries to employees and pension to the pensioners allocated to such plants.

On a summary submitted by the Power Division to ECC while expressing no objection to the absorption of surplus employees of such plants, in Discos, did not approve the payment of pension’s contribution for such employees, to DISCOs. Power Division was further directed to propose viable options for resolution of pension issues of GENCOs employees.

Currently, 2368 pensioners are allocated to the GENCOs power plants which are decided for immediate closure. The annual pension expense, of these pensioners is Rs.3. 500 billion. These pensioners are drawing their pensions from offices of DISCOs or Wapda, situated in their vicinity. After payment of pensions, the DISCOs/Wapda get reimbursement from the respective GENCOs.

GENCOs & DISCOs are companies, fully owned by Govt of Pakistan. similarly, Wapda is a statutory body. The employees and pensioners of these companies have protected pensionary rights and their pension payments are covered in tariffs of respective GENCOs. If these employees& pensioners are transferred and allocated to the DISCOs/Wapda, the DISCOs & Wapda will claim its impact in their respective tariffs. Hence, there will be no additional impact on the consumer-end tariff. Power has proposed that 2368 pensioners of GENCOs may be adjusted in their pension disbursing in DISCOS or Wapda. Similarly, 1753 employees of these plants would be adjusted in DISCOs Pensions of these employees will be paid by the relevant DISCOS on their retirement according to rules of the relevant DISCOs. In turn, the respective DISCOs & Wapda would claim adjustment of the same from Nepra in their respective tariffs.

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