Smooth fuel supply to cut power gap to 2,000MW

Pepco MD claims electricity is being provided at a loss.

LAHORE:


Pakistan Electric Power Company (Pepco) Managing Director Rasool Khan Mehsood has said that if fuel shortage is overcome, then electricity shortfall can decrease to 2,000 megawatts.


Mehsood, in a press briefing on Monday, said that the country is not facing a power crisis, instead it is suffering from an energy crisis, which leads to electricity shortfall.

At present, the country is enduring power shortfall of 4,000 to 6,000 megawatts because of water shortage as temperature remains lower than normal in Skardu and adjoining areas, leading to slow melting of snow.

An alternative dam should be built if Kalabagh dam’s construction is not possible, he said and stressed the need for expediting construction of dams and the Thar coal project for overcoming electricity shortfall.

He claimed that Pepco is selling electricity cheaper than its cost and has been incurring a loss of Rs1.16 per unit. He also recalled that Iran will provide Pakistan with 1,000 megawatts of electricity in the next four years.

He said that if new power projects had been executed in a serious manner over the last 15 years, then electricity outages would never have been as severe as they are at present. He said the government is taking steps to overcome power shortages.


Mehsood said that the increased shortfall was due to unavailability of gas to four power plants of Pepco in the previous month.

He said that receivables of Pepco are increasing day by day as provinces have to pay outstanding dues. Sindh has to pay Rs39 billion, Punjab Rs6 billion, Khyber-Pakhtunkhwa Rs20 billion and Balochistan Rs4.66 billion.

If provinces pay the overdue amount to Pepco, the situation will get better, as in that case Pepco will pay its dues to different oil companies, he said.

Mehsood said President Asif Ali Zardari has called a meeting on July 20 to discuss the electricity crisis in which Pepco officials will brief him on the projects underway to tackle shortages.

Answering a question about power outages in Ramazan, he said that Pepco is planning not to suspend supply during the month, especially during Sehri and Iftaar timings, however nothing has been finalised yet.

Published in The Express Tribune, July 19th, 2011.


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