Repayments via power bills: DC fans to replace AC ones thru govt initiative

Business Recorder

05-05-2025

ISLAMABAD: The government is poised to launch a nationwide initiative to replace alternating current (AC) fans with more energy-efficient direct current (DC) fans. This programme will be funded by commercial banks, with repayment to be made in small installments through electricity bills.
Dr. Fakhray Alam Irfan, Secretary of Power, disclosed this information during a meeting of the National Assembly Standing Committee on Power, chaired by Muhammad Idrees. He explained that key fan manufacturers have been in regular discussions with the National Energy Efficiency and Conservation Authority (NEECA). As a result, many large manufacturers have already shifted from producing AC fans to DC fans. In addition, Dr. Irfan highlighted a new program introduced by the Prime Minister, which will be rolled out within the current financial year. The program, which is almost finalized, allows consumers who opt to participate to receive loans from banks to replace their old, inefficient AC fans with energy-efficient DC fans. These loans will be repaid through adjustments in their electricity bills.
The committee was informed that the replacement of AC fans with DC fans could save up to 5,000 MW of electricity, eliminating the need for additional generation capacity. Currently, AC fans consume 388 million units of electricity annually, costing $25 million. Air conditioners account for 135 million units with a financial impact of $7 million, while refrigerators consume 1,073 million units at a cost of $53 million.
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The committee was also briefed on steps being taken to ensure energy conservation across public sector organizations. The Power Minister has written to all public sector departments to comply with energy-saving building codes, and provincial governments have been urged to implement these codes as well. The committee plans to send its recommendations to the provincial governments for further action.
The government's target is to save $6.4 billion annually starting from 2030 through the implementation of Minimum Energy Performance Standards (MEPS).
During the meeting, MNA Chaudhary Naseer Ahmed Absas revealed that some guest houses in Islamabad are involved in electricity theft, allegedly in collusion with officials from the Islamabad Electric Supply Company (IESCO). He added that one IESCO official owns a guest house that is directly supplied with electricity.
Absas further claimed that consumers who have installed solar photovoltaic (PV) panels are being sent inflated bills. Additionally, meters in several government buildings and water pumps are reported to be faulty or burnt, yet these consumers are still being overbilled, with the costs of stolen electricity added to their charges.
The issue of recovery and losses at Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO) also came under discussion. It was revealed that the figures provided by the Power Division and both distribution companies differed, leading to a disagreement between the Power Minister, Sardar Awais Khan Leghari, and the CEO of HESCO. Imtiaz Gilani, Additional Secretary of the Power Division, noted that the performance of both HESCO and SEPCO had deteriorated compared to the previous year.
In his briefing on the Indicative Generation Capacity Expansion Plan (IGCEP) for 2025-35, the Power Minister stated that when the current government took office, there were plans for power projects totaling 90,014 megawatts. By eliminating expensive projects, the government has reduced the financial burden by Rs 1,953 billion.
He further explained that by adjusting the timelines of these projects, the government has saved Rs 2,790 billion, ultimately saving consumers Rs 4,700 billion.
The Minister emphasized that with this revised planning, the government will no longer need to purchase additional electricity, and the expected rise in electricity prices will no longer occur. 'Had we not made these adjustments, the additional costs would have inevitably been passed on to the consumers,' he added.
During the meeting, MNA Ameen-ul-Haq from Karachi inquired about safety measures in place for electricity distribution in the city. Sadia Dada, Chief Distribution Officer at K-Electric (KE), responded that strict safety measures are enforced during both the summer and monsoon seasons. She explained that water accumulation caused by rainfall and illegal power connections (known as 'kundas') create further challenges. To mitigate these issues, KE temporarily shuts off grids during rainy seasons to protect lives, and power is restored once the water levels recede. Dada also noted that KE operates 2,100 feeders, with 70% of them free from load-shedding. Industrial areas are fully exempt from load-shedding. KE plans to invest around $2 billion in upgrading its system, with the investment plan awaiting approval from the National Electric Power Regulatory Authority (NEPRA).
Secretary of the Power Division, Dr. Fakhray Alam Irfan, informed the committee that KE currently receives 900 MW of electricity from the national grid, and this supply will increase to 1,600 MW in the near future. He further stated that the provision of additional electricity from the national grid would reduce the financial burden of subsidies on the government.
On the issue related to restoration of electricity supply in those areas of KP where losses are 80- 100 per cent also came under discussion. Power Minister stated that a policy be framed with the support of public representatives but in case of loss, no electricity will be supplied.
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