Power companies pay just Rs10b to PSO
To end circular debt, govt plans to impose petroleum levy on natural gas and LPG.
ISLAMABAD:
The government appears to be taking only short-term measures in a desperate bid to keep the energy chain intact as electricity supplying companies paid only Rs10 billion on Tuesday to cash-strapped Pakistan State Oil on account of fuel supply, which is just a peanut considering the huge amount of hundreds of billions of rupees stuck in the energy system.
Since the present government came to power, it has not been able to wipe out circular debt, which has been piling up due to huge power distribution losses and subsidy for consumers. However, Petroleum Minister Dr Asim Hussain is hopeful that this time the government will be able to address the issue on a long-term basis.
“Now we are trying to create fiscal space to end circular debt by imposing petroleum levy on natural gas and liquefied petroleum gas (LPG),” Hussain told The Express Tribune. The government would also save money through use of liquefied natural gas (LNG) instead of furnace oil in power plants, he said.
“I have sent a summary to the Economic Coordination Committee (ECC), seeking imposition of petroleum levy on natural gas,” he said, adding the petroleum ministry would also table a bill in parliament to get its approval for imposing the levy on locally produced LPG following suspension of new LPG policy by the Lahore High Court (LHC) on Monday.
Hussain said a summary had also been sent to the cabinet for imposing infrastructure development levy on natural gas which would generate around Rs30 billion per annum to finance Iran-Pakistan (IP) gas pipeline.
Earlier, the proposal was tabled before the Council of Common Interests (CCI) which directed the ministry to approach the cabinet in this regard.
The minister added that during the meeting on energy shortages held on Monday, a plan for restructuring the water and power ministry was also discussed. “Under the shake-up plan, power distribution and generation companies will have independent board of directors.”
Earlier, PSO suspended oil supply to power generation companies and curtailed sales to independent power producers Hubco and Kapco due to non-payment of dues.
Hubco has paid Rs4 billion, Kapco Rs4 billion and Wapda Rs2 billion. On Thursday and Friday last week, PSO got Rs3.8 billion from Hubco and Kapco and another Rs2 billion from Hubco on Monday.
Receivables of PSO stood at Rs149 billion against payables of Rs160.4 billion on Monday to local and international fuel suppliers.
In the face of countrywide protests against power outages, the National Electric Power Regulatory Authority (Nepra) suspended public hearing on Monday on a petition filed by the Central Power Purchasing Agency (CPPA) that had sought a tariff increase of Rs3.60 per unit on account of fuel price adjustment for the month of August.
Published in The Express Tribune, October 5th, 2011.
The government appears to be taking only short-term measures in a desperate bid to keep the energy chain intact as electricity supplying companies paid only Rs10 billion on Tuesday to cash-strapped Pakistan State Oil on account of fuel supply, which is just a peanut considering the huge amount of hundreds of billions of rupees stuck in the energy system.
Since the present government came to power, it has not been able to wipe out circular debt, which has been piling up due to huge power distribution losses and subsidy for consumers. However, Petroleum Minister Dr Asim Hussain is hopeful that this time the government will be able to address the issue on a long-term basis.
“Now we are trying to create fiscal space to end circular debt by imposing petroleum levy on natural gas and liquefied petroleum gas (LPG),” Hussain told The Express Tribune. The government would also save money through use of liquefied natural gas (LNG) instead of furnace oil in power plants, he said.
“I have sent a summary to the Economic Coordination Committee (ECC), seeking imposition of petroleum levy on natural gas,” he said, adding the petroleum ministry would also table a bill in parliament to get its approval for imposing the levy on locally produced LPG following suspension of new LPG policy by the Lahore High Court (LHC) on Monday.
Hussain said a summary had also been sent to the cabinet for imposing infrastructure development levy on natural gas which would generate around Rs30 billion per annum to finance Iran-Pakistan (IP) gas pipeline.
Earlier, the proposal was tabled before the Council of Common Interests (CCI) which directed the ministry to approach the cabinet in this regard.
The minister added that during the meeting on energy shortages held on Monday, a plan for restructuring the water and power ministry was also discussed. “Under the shake-up plan, power distribution and generation companies will have independent board of directors.”
Earlier, PSO suspended oil supply to power generation companies and curtailed sales to independent power producers Hubco and Kapco due to non-payment of dues.
Hubco has paid Rs4 billion, Kapco Rs4 billion and Wapda Rs2 billion. On Thursday and Friday last week, PSO got Rs3.8 billion from Hubco and Kapco and another Rs2 billion from Hubco on Monday.
Receivables of PSO stood at Rs149 billion against payables of Rs160.4 billion on Monday to local and international fuel suppliers.
In the face of countrywide protests against power outages, the National Electric Power Regulatory Authority (Nepra) suspended public hearing on Monday on a petition filed by the Central Power Purchasing Agency (CPPA) that had sought a tariff increase of Rs3.60 per unit on account of fuel price adjustment for the month of August.
Published in The Express Tribune, October 5th, 2011.