Govt to answer for restrictions on affordable electricity in province

Textile mill owners challenge withdrawal of wheeling system


Our Correspondent December 12, 2024
Distribution companies were procuring less electricity, which resulted in higher capacity payments, and they failed to justify the low intake at a hearing. photo: file

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PESHAWAR:

A two-member bench of the Peshawar High Court, comprising Justice Sahibzada Asadullah and Justice Waqar Ahmed, has sought responses from Pakhtunkhwa Energy Development Organisation (PEDO ), the federal government, NEPRA, and other authorities on a petition challenging restrictions on the wheeling system for the provision of affordable electricity in K-P.

The bench heard the petition filed by the Khyber-Pakhtunkhwa Textile Mills Association.

During the hearing, the petitioners' lawyer, Shumail Ahmed Butt, informed the court that Khyber-Pakhtunkhwa is currently the largest producer of electricity in the country, generating power at an extremely low cost of Rs2-3 per unit.

"However, this hydropower is being supplied to mills at Rs60-70 per unit. He pointed out that the federal government had previously introduced a wheeling system, which allowed for the transfer of electricity. "However, the federal government later directed all DISCOs (distribution companies) to halt the implementation of the wheeling system, citing potential issues.

He explained that under the wheeling system, mills could generate electricity from hydropower and supply it to their respective units, paying the federal and provincial governments for the electricity costs.

"The federal government's actions have created numerous problems, adversely affecting the textile sector. He argued that if electricity is provided to the mills under the wheeling system, many issues could be resolved, and employment opportunities could be created.

The lawyer further stated that PEDO had advertised under the wheeling system, and all members of the Textile Mills Association expressed interest.

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