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PSO finally paid to switch the lights back on
Permanent solutions to energy crisis to be discussed at later meetings.
The 2010 conservation plan might be followed once again, which had two weekly holidays, closure of all markets and parks at 8pm, less use of streetlights, implemented in it.
ISLAMABAD:
Faced with an energy crisis requiring long-term structural change, Prime Minister Yousaf Raza Gilani has opted for the quick-fix solution of closing businesses and shops. The PM has asked the ministry of water and power to persuade the provinces that two-day weekly holidays and shop closures at 8pm will overcome the load-shedding crisis which has led to countrywide protest.
On the PM’s orders, the finance ministry also released Rs9 billion to Pakistan Electric Power Company (Pepco) on Monday, which in turn will be paid to Pakistan State Oil (PSO), whose receivables have crossed an alarming Rs155 billion. PSO reportedly received Rs3.8 billion from Hubco and Kapco on Thursday and Friday.
(Read: Outstanding dues – PSO halts supply to power companies)
For now, the money paid to PSO will result in the resumption of fuel to thermal power plants, which, in turn, will help address the crippling electricity shortage in the country.
During a high-level meeting on the energy crisis chaired by the PM, the complete privatisation of power generation companies (Gencos) was discussed as a measure to tackle the circular debt that has plagued the country’s energy chain.
(Read: Private sector regime – Businessmen welcome transfer of Gencos)
The government is already working on a plan to hire private sector companies for the operation and maintenance of Gencos. The privatisation of Gencos would theoretically enable the government to provide electricity on a cash rather than credit basis, thus reducing the severe circular debt which currently amounts to Rs450 billion. Sources said that, under this plan, Gencos would directly provide power to their consumers.
The special emergency meeting was attended by Minster for Finance Dr Abdul Hafeez Sheikh, Minister for Water and Power Syed Naveed Qamar, Minster for Petroleum Dr Asim Hussain among others.
On the other hand, power tariffs are set to increase by over Rs3 per unit due to fuel adjustments for August, after a decision taken by the National Electric Power Regulatory Authority (Nepra), who are scheduled to hold a public hearing on Tuesday (today).
Pepco is owed over Rs300 billion from clients and Rs 155 billion from government departments, including Rs74 billion from the provinces. The meeting emphasised that money should be deducted directly from provinces’ accounts where there is a reluctance to pay bills.
Sources told The Express Tribune that it was also agreed that an energy conference would soon be held to develop a consensus on the two-day weekly holiday proposal. The Prime Minister also directed the committee members to submit their recommendations in a special cabinet meeting, to be convened shortly, aimed at resolving the load-shedding crisis.
Published in The Express Tribune, October 4th, 2011.
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Reader Comments (17)
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Taping the problem is not going to take us anywhere. There has to be a permanent solution at least to resolve the circular debt related energy crisis.
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I think closing businesses and shops at 8 pm is a brilliant idea we lazy nation wake up late starts work & late end late, we should change our life style and follow all developed countries where all businesses closes at 6-7pm excepts eating places & resturants which also closed before midnight.
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This is band aid solution.
The real problem is subsidies and power theft. Circular debt in reality is bad debt which is circulating amongst various entities.
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Let there be Light!
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go for more hydro power through dams and supplement that with thar coal power….within a few years you will be able to not only meet the demands but export electricity as well………..
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Most markets experience load shedding between 8 & 10 pm in any case. Stores generally close by 11. So what energy conservation are we talking about? 1 commercial hour? Another silly ploy by the jokers in Islamabad!
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Unfortunately we are still investing in IPPs. We prefer to pay 2 Billion dollars annually to the Oil Companies instead of investing One Billion in renewable energy that is free of running costs. With a Billion dollars a year we could have managed to preempt the increasing demand, and reducing the overall production cost. I am no speacilist but a few hours on the Internet and anyone can see that there are a handful of options on Hydal power as well. I saw the chairman PEPCO lamely defending himself yesterday and making excuses that Hydal output is low because of Floods. Can anyone tell him please that a 10 year old Turbine system has the ability to recycle the utilized water over and over again. If anyone had thought of it they would have increased the power generation by twice as well as offsetting Indian desire to paralyse our Industry by blocking our water….Recommend
They are still turning off the lights after every two hours for a duration of two and a half hours.
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DARK DAYS AHEAD
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Why would Pakistan need power for the civilians? They need to continue making a few hundred more nuclear warheads and have to spend more money on the armed forces which are in a poor state. We are a nuclear power and can live without food by eating grass. It is a matter of priorities where we allocate the money in the budget.
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If only they wud build the damn DAM . they shoukd have collected rain water which we are blessed with & used that . then all markets shops should open by 10 am & close at 8 pm . all offices & banks & schools should be Closed on saturdays . we will all be happy & save energy . many big companies should start using solar energy ,Recommend
If in any case the power companies knew that they are running out of stock and could not get next delivery of fuel from PSO. Why these power companies did not informed about the seriousness of the situation???….Is this a pressure game going around that some agitation to get fund released from federal government????……………AND MAKE IT CLEAR THAT THE GOVT IS NEVER INTERESTED IN A PERMANENT SOLUTION OF ENERGY. THEY JUST ONLY INSTALLED IPP AND OTHER SHORT TERM PROJECT’S…..!!!!Recommend
Electricity theft needs to be stopped ASAP. The entire mobile market on MA Jinnah rd runs on kundas. The VIP’s who get electricity free – I think either charge them now – we are not a rich country and cannot afford to give away free amenities to people who can afford to pay for them. Or give them much lesser units free. Something needs to be done to stop theft. As concerns closing shops at 8 – great idea – ofcourse if it is implemented that is.Recommend
it was also agreed that an energy conference would soon be held to develop a consensus on the two-day weekly holiday proposal.
Sense less move as two days leaves will increase the burden on electricity distribution on house hold consumers. Kick of new hydro power project to increase the source as the population is increasing and industry will eventually need up to 25000MGW in two years time for next 3 years. Delaying tactics will result in catastrophic situation for the economy and population of this land. The only things lacking is “Political Will” to resolve the issues for the best interest of this nation. Convening a meeting is destroying time and enjoying official meeting meals that it.
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Don’t understand why all these so called leaders at the helm of affiars are understanding that what it is to be without light, ask them how many hours do they bear of load shedding; zero. I think all our voices are falling into deaf ears.
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2 day weekly holidays how much is that costing Pakistan ppl. No business, government is also losing money. Is this anyway to run a country to save money they are wasting millions and causing ppl to lose livelihood.
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Western countries have the traffic rush hour at 6 am….we have it at 11 am. We are a lazy nation.
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