Govt to clear major part of circular debt

PC official says power shortfall to be restricted to 4,000MW.

ISLAMABAD:

In order to increase power generation and reduce energy shortfall, the government has decided to clear a major part of the outstanding circular debt amounting to Rs210 billion next week, according to Planning Commission (PC) Member Energy Shahid Sattar.

The power shortfall would be restricted to 4,000 megawatts (MW) during the peak summer season this year as the government had already taken initiatives to tap the full potential of power-generating units, Sattar told APP.

Power generation units had a capacity of producing about 14,500 to 15,000MW, while the electricity demand remained between 17,500 and 18,000MW during peak hours of summer, he said.

“The current surge in power shortfall was due to delay in PSO’s oil shipments and the circular debt that have caused a fall in power generation,” he said.

According to Sattar, currently the full power generation potential was not being tapped due to shortage of oil and gas, adding that the problem would be overcome as the government was working to resolve the issue.

He, however, stressed the need for bringing down electricity losses, saying that overcoming leakages was as important as generating electricity. He added that the key to improving performance in the energy sector was to develop and implement a national integrated energy policy. 

Published in The Express Tribune, May 3^rd, 2011.