Electricity consumers brace for high bills

The time hydroelectric levels return to normal, the shortage will be met through IPPs, which will cost more.

LAHORE:

Consumers of Pakistan Electric Power Company (Pepco) should prepare themselves for higher billing as power generation now mostly depends on thermal plants especially after the closure of canals, says a top Pepco official

Talking to The Express Tribune, Pepco Director General Ijaz Rafique Quraishi said hydropower generation had dropped sharply because of annual canal closure for maintenance while gas supply to all power plants of Pepco, except one, had been stopped, leading to extensive load-shedding.

However, he expected the situation to get better in a couple of days following assurance of the water and power minister that some payments would be made to the independent power producers (IPPs) and Pakistan State Oil (PSO).

“We have asked the ministry to arrange 10,000 megawatts of electricity for our system by the time things get back to normal. The minister has agreed, but maximum generation will be through IPPs run on furnace oil and diesel. This will surely increase per unit cost of electricity, which will have to be paid by consumers,” Quraishi said.

However, he refused to give the approximate cost for December and January, saying the price would be determined by the National Electric Power Regulatory Authority (Nepra).

Nepra determines electricity tariff by adding unit prices of all power generation sources. It also considers fluctuation in oil prices to determine the fuel adjustment surcharge.

Hydropower has the lowest per unit cost at Rs1.54 while diesel-powered plants have the highest cost at Rs18.02 per unit. Per unit cost of furnace oil-based plants is Rs14.81.

In addition to these, Pepco also purchased electricity from a rental power plant in 2011 at Rs42 per unit, the highest rate.

At present, Pepco faces a shortfall of around 4,000 megawatts of electricity as production stands at 7,000 megawatts while demand stands at 11,000 megawatts. Of the total, the share of hydropower production is around 1,210 megawatts, with an outflow of 20,000 cusecs from Tarbela Dam and 8,000 cusecs from Mangla Dam.

Quraishi said oil-based power generation stood just above 5,000 megawatts while only one plant was running on gas, which was providing around 500 megawatts. A rental power plant is also supply a few megawatts.

“We cannot overcome energy crisis unless people start saving energy by using quality and energy-efficient products,” he said. “Even after meeting the demand of the people, we have to educate them how to save energy as the demand will continue to increase.”

He stressed that if consumers started saving energy today, load-shedding would end immediately, adding the company might start a special campaign in the near future to change the culture.

Published in The Express Tribune, January 6^th, 2012.