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Review of Implementation Strategy held on January 26, 2017 at Institute of Policy Studies, Islamabad.
The Panelists included: Asad Mehmood, Manager Technical, NEECA; K.M. Zubair, Former Managing
Director, ENERCON; and Ahmad Sohail, Technical Advisor, Arizona State University (based at UET
Peshawar). The session was chaired by Ashfaq Mahmood, Former Secretary, Water & Power, Patron,
Energy Management Program, COMSATS, Islamabad.
1
Efficiency and Conservation, U.S. Energy Information Agency, December 15, 2016, accessed, February 6, 2017,
http://www.eia.gov/energyexplained/index.cfm?page=about_energy_efficiency
2
The bill is available at: http://www.enercon.gov.pk/
3
"Sectors of Economy" include but not limited to power sector, industrial sector, transport sector, agriculture and livestock
sector and the building sector.
4
http://www.enercon.gov.pk/
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of plans and policies for promoting mitigation, 6. Establishment of too many accredited labs10
energy efficiency and conservation best practices.5 in the public sector will demand enormous
resources, time and most likely too many
Energy Efficiency and Conservation Act is a major bureaucratic parleys. Besides, access to such
milestone towards national energy security. labs for the energy related private
Nonetheless, there are certain concerns pertaining stakeholders, will be full of hurdles.
to the act that require due diligence while 7. Measures like appliances replacement
implementation of the law. would involve financial implications, if not
evaluated carefully.
Concerns
8. Conservation on the cost of consumers
1. The composition of Pakistan Energy should be avoided e.g. earlier measures for
Efficiency and Conservation Board handling energy shortages through switching
(PEECB)6 is complex with the inclusion of off street lights and closing down markets.
the majority of secretary level members. It
Recommendations
will be extremely difficult to gather all these
members and convene the boards meetings. Following are the set of recommendations
2. Most of the board members come from the pertaining to short, medium and long term issues
ministries whom the implementation and strategies. These recommendations are
measures are to be enforced upon. Reaching categorized into four sections: Organizational
on consensus in implementation modalities Structure; Legal & Regulatory Issues; Engagement
will therefore be quite difficult.7 with Private Sector, Academia and Universities;
3. Establishment of many multi-tiered and Awareness Campaigns/ Strategies.
organizations will also be quite cost
intensive. 8 Organizational Structure
4. The placement of inspectors may add to
unnecessary policing of industrialists and the 1. A well-defined institutional structure
entrepreneurs that might result in should be delineated, down to the lowest
disappointment with the whole process.9 level, covering horizontal as well as vertical
5. Ensuring energy efficiency in power, gas and organizational matrix and the same be
other energy utility companies in public shared through the NEECA portal.
sector have been ignored in the law.
5
Ibid.
6
Composition of PEECB (23 Members): 1. Chairman Federal Minister of the Division to which subject matter stands Allocated
(Water & Power) 2. Vice Chairman Federal Secretary of the Division to which subject matter stands Allocated (Water &
Power) Members: Federal Secretaries (Finance, Petroleum & Natural Resources, Planning, Science & Technology, Industries,
Housing & Works, Climate Change); Provincial Secretaries (Designated Departments); Chairman OGRA & NEPRA; Managing
Director ENERCON; One Nominee from Chambers of Commerce & Industry; Five members from the Private Sector including
Agriculture Expert.
7
Ibid.
8
An Act to provide for the establishment of institutions and enunciations of mechanisms and procedures so as to provide for
effective conservation and efficient use of energy.
9
15. (2) Subject to any rules made under this Act an inspecting officer shall have power to-(a) inspect any operation carried
on or in connection with the equipment or appliance specified under clause (b) of section 10 or in respect of which energy
standards under clause (a) of section 10 have been specified; (b) enter any place of designated consumer at which the energy
is used for any activity and may require any proprietor, employee, director, manager or secretary or any other person who
may be attending in 'any manner to or helping in, carrying on any activity with the help of energy-(i) to afford him necessary
facility to inspect-(a) any equipment or appliance as he may require and which may be available at such place; (b) any
production process to ascertain the energy consumption norms and standards; (ii) to make an inventory stock of any
equipment or appliance checked or verified by him; (iii) to record the statement of any person which may be useful for, or
relevant to, for efficient use of energy and its conservation under this Act.
10
7. (K) establish and maintain one or more laboratories as accredited laboratories for conducting tests and analysis to help
the Authority in the performance of its functions and to conduct research in various aspects of energy conservation.
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2. Suitable amendments should be made in the 5. The replacement of domestic appliances
law so that the PEECB meetings can be should be carefully weighed in terms of
attended by officials of up to Joint its practicability and cost effectiveness
Secretary Level, specifying minimum etc. It may be more prudent to ensure that
essential attendees strength for holding the new procurements conform to energy
meetings in the absence of some member efficiency standards.
(s). This will overcome the concerns of 6. Maximum permissible energy intensity
delays in the critical policy decisions which should be defined for all processes and
can dilute the desired impacts. for all type of equipment/ appliances.
3. While it is essential to have infrastructure 7. The regulatory, certification and audit
for effective performance of the envisaged clauses must include process benchmarks
energy efficiency and conservation based on latest technological
functions, utilization of existing advancements, for each sector with
departments, buildings and labs should be potential for energy saving, which may be
given priority to save avoidable expenses. revised by a subordinate division as per
4. While giving due attention to all the sectors local climatic conditions and the resource
of economy, relevant private sector stake availability.
holders opinion should be incorporated in 8. Checks and controls on the claimed
the applicable policy measures. products energy parameters may be
instituted through mechanisms like:
Legal & Regulatory Issues a. Pre-shipment inspections of power/
industrial machinery and
1. Roles and responsibilities at federal,
equipment.
provincial and local bodies level must be
b. Inspection of domestic appliances
clearly laid down. The same may be
and commercial equipment through
defined after sharing the draft policy with
accredited labs could be established
all stake holders and incorporating
in existing departments (buildings)
feedback in the final document. A
like Pakistan Council of Scientific
detailed document covering litigation
and Industrial Research (PCSIR),
matters related to implementation of the
Pakistan Industrial Technical
law will be needed from very early stages.
Assistance Centre (PITAC), and
2. To ensure effectiveness of policies in all
Pakistan Standards & Quality
times, relevant departments should be
Control Authority (PSQCA) in
designated for data collection and its
order to save on financial needs for
evaluation for making amendments in
new structures and infrastructure.
relevant rules and guidelines.
9. The unconventional models successfully
3. Some rules and regulations must be in
used in the world, can be evaluated for
place for prevention of distribution losses
adoption in our environment, for
by the energy utility companies like
example:
SNGPL, SSGCL and the DISCOs.
a. Line of Credit System in which
4. Incentives should be introduced for
banking sector provides credit to the
voluntary contributions from
industrialists recommended by
industrialists and entrepreneurs, which
agencies like NEECA after they
must precede the penalties. Incentives in
submit energy conservation project.
the form of tax rebate etc. for those
Failure to perform as promised/
willingly taking actions to improve their
planned entails penalties against the
energy consumption rate. Policing must
defaulters.
not become a threat to the private stake
b. Energy Service Providers who offer
holders in the energy, industrial and other
energy management plans to the
sectors.
industrialists/ entrepreneurs
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demanding that they be paid from c. Enhance quality and prospects for
the savings attained by the latter. research in the energy related subjects.
10. Power sector should be approached to lay
down efficiency benchmarks for all the Awareness Campaigns/ Strategies
upcoming power plants, besides
1. An important requirement is to incorporate
persuading existing ones to take steps for
the concept of energy conservation in the
improving their plants efficiency.
curriculum at primary and secondary level.
11. Energy conservation fund may be used to
2. Domestic consumers should be educated
support projects presenting assured
about enormous energy saving potential in
energy saving capacity.
changing their life-style. The concept of
12. It should be ensured that the energy
conservation in the light of Sunnah, should
projects including those related to China-
also be highlighted in the awareness
Pakistan Economic Corridor (CPEC) are
campaigns. Media can be used extensively
energy conserving and efficient.
for public awareness purpose.
Engagement with Private Sector, Academia and 3. Awareness efforts should be aimed at
Universities cultural transformation in the society which
necessitates a lot of one-on-one
1. The law implementation measures must interactions. Volunteers (especially among
incorporate provisions for involving the teaching staff) from schools, colleges
academia and universities in which and universities offer promising potential
scholarship programs can attract better for the same which must be exploited
brains. Academia can play a pivotal role in through suitable arrangements in the
formulating the policies, offering testing implementation methodology.
labs, educating and training support, 4. Prospective financial savings potential
research and much needed awareness should be highlighted for the energy
campaign. Formal training for qualifying industry.
people to derive desired results from the 5. Slogans such as Energy Efficiency for
energy efficiency and conservation efforts Trade Competitiveness should be framed
is essential. in consonance with the role/ function of
2. Multifarious and too many labs will be each sector and, be spread to create
needed as we move forward towards awareness.
application of the Law. It will be much
more economical and efficacious to The overall promotion of the culture of energy
integrate universities in this job, which will conservation needs an integrated strategy. There is
offer following benefits: a need to put in place a master integrated plan right
a. Bring in huge savings against the from the beginning. It would offer much better
finances required for establishing all the dividends in advancing the desired goals.
labs. Incentivizing the mechanism of energy efficiency
b. Increase the students/ scholars and conservation is the suggested approach in
learning opportunities. achieving the goals.
Prepared by IPS Task Force | For queries: Mairaj-ul-Hamid, Asst. Research Coordinator, mairaj@ips.net.pk | www.ips.org.pk
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