Philips to provide 20m energy savers to PEPCO
Supply contract signed at WAPDA house on Wednesday.
MIRPUR (AJK):
The Pakistan Electric Power Company (Pepco) has signed a supply contract for 20 million Compact Fluorescent Lamps (CFLs) on a cost, insurance and place of destination (CIP) basis with Philips Electrical Industries of Pakistan. Pepco PMU Project Director Khalid Hussain Rai and Philips Chairman and CEO Asad S Jaffer signed the contract deed at Wapda House on Wednesday under the ‘National CFL Project – Prime Minister Energy Saver Programme’.
A Pepco spokesman later said in an official statement that under the contract, the first consignment of CFLs (or energy savers, as they are commonly known) will be delivered to 36 warehouses all over the country within 12 weeks, while free distribution of the energy-efficient lamps to consumers will start soon after the delivery.
Total cost of this project comes to around Rs2.8 billion, which will be funded by the Asian Development Bank and L’Agence Française de Développement (AFD) of France. The Ministry of Water and Power will oversee overall project management and Pepco will act as project coordinator; whereas distribution companies and the Karachi Electric Supply Company will act as executers.
Elaborating upon features of the contract, the spokesman said that the cost per energy saver is Rs140 including insurance, freight charges to final destination, cost of containers, and inland transportation and port handling charges. The life of every CFL is 10,000 hours with a two years warranty, whereas the market price of Philips’ CFLs is Rs189 with a life of 8,000 hours and one year warranty only. The price differential is expected to save around Rs980 million for the programme.
It is expected that the project will help reduce demand by over 1,000 megawatts (MW) and collectively save $1.84 billion. It will also help in reducing consumers’ electricity bill by Rs300 per bulb, per annum. It is hoped that electricity saved will be sold to higher tariff consumers, generating additional revenue of approximately $29 million per year for distribution companies.
The spokesman further said that a contract for the 2nd phase of free distribution of 10 million energy savers is likely to be signed within the month, and a notification of award has been issued in this regard.
Published in The Express Tribune, June 14th, 2012.
The Pakistan Electric Power Company (Pepco) has signed a supply contract for 20 million Compact Fluorescent Lamps (CFLs) on a cost, insurance and place of destination (CIP) basis with Philips Electrical Industries of Pakistan. Pepco PMU Project Director Khalid Hussain Rai and Philips Chairman and CEO Asad S Jaffer signed the contract deed at Wapda House on Wednesday under the ‘National CFL Project – Prime Minister Energy Saver Programme’.
A Pepco spokesman later said in an official statement that under the contract, the first consignment of CFLs (or energy savers, as they are commonly known) will be delivered to 36 warehouses all over the country within 12 weeks, while free distribution of the energy-efficient lamps to consumers will start soon after the delivery.
Total cost of this project comes to around Rs2.8 billion, which will be funded by the Asian Development Bank and L’Agence Française de Développement (AFD) of France. The Ministry of Water and Power will oversee overall project management and Pepco will act as project coordinator; whereas distribution companies and the Karachi Electric Supply Company will act as executers.
Elaborating upon features of the contract, the spokesman said that the cost per energy saver is Rs140 including insurance, freight charges to final destination, cost of containers, and inland transportation and port handling charges. The life of every CFL is 10,000 hours with a two years warranty, whereas the market price of Philips’ CFLs is Rs189 with a life of 8,000 hours and one year warranty only. The price differential is expected to save around Rs980 million for the programme.
It is expected that the project will help reduce demand by over 1,000 megawatts (MW) and collectively save $1.84 billion. It will also help in reducing consumers’ electricity bill by Rs300 per bulb, per annum. It is hoped that electricity saved will be sold to higher tariff consumers, generating additional revenue of approximately $29 million per year for distribution companies.
The spokesman further said that a contract for the 2nd phase of free distribution of 10 million energy savers is likely to be signed within the month, and a notification of award has been issued in this regard.
Published in The Express Tribune, June 14th, 2012.