Disciplining the undisciplined: Proposal tabled to penalise inefficient power firms

Energy committee considers curtailing power supply to uneconomical Discos.

ISLAMABAD:

Amid 6,675 megawatts (MW) power shortfall leading to series of load shedding across the country, Cabinet Committee on Energy on Friday proposed to penalise inefficient power distribution companies (DISCOs) with high line losses by curtailing power supply.

Prime Minister Yousaf Raza Gilani in the preceding meeting of the committee had asked member to present recommendations.

The committee deliberated at length about the overall load-shedding management in the country and asked the Ministry of Water & Power to ensure that the Discos be made to follow the load-shedding plans, and non-compliant companies are brought to task.

“The committee has considered a proposal to give more power to efficient power distribution companies and curtail the power of inefficient power firms,” Federal Information Minister Qamar Zaman Kaira said during a joint press conference along with Petroleum Minister Dr Asim Hussain.

Kaira said that energy committee held its meeting on Friday and proposed to punish the chief executive officers of inefficient Discos that will try to get more power than its quota.

According to a statement issued by Ministry of Water and Power, power generation reduced due to less water inflows at Mangla and Tarbela dams compared to last year. The shortfall during peak hours was about 6,675MW and system computed demand was 17,896MW against total generation of 10,421MW. Out of the total generation, 670MW was exported to KESC. The hydel generation was 4,206MW, 1,330MW thermal and 4,885MW through independent power producers.

The power ministry said that Kapco power plant with 876MW was under forced outage due to fuel shortages. Oil stock positions at all residual fuel oil operable plants were critically low and one unit of Hubco power plant with 300MW, 210MW Saif Power, 213MW Orient Power and 207MW Halmore were also under forced outage due to non availability of fuel.

Responding to a question about poor energy mix, Kaira said that past government was responsible for it. “We have acquired land for Basha dam and initiated work on Neelum-Jhelum hydropower project,” he said adding that present government has tried to enhance share of hydel and nuclear in energy mix.

“We are facing serious issues such as war on terror and power crisis,” he said adding that supply of oil and power bills issue are also causing problems in the energy sector. He said that the gap between energy cost and its sale had led to circular debt. “Energy committee is working to resolve it,” he said.  He also added that husband of Foreign Minister Hina Rubbani Khar had availed the facility of rescheduling the bill that was allowed to all businessmen.

The energy committee also informed the Federal Minister for Finance and Economic Affairs Dr Abdul Hafeez Shaikh that 2,000MW of electricity can be added to the national grid provided that sufficient gas or furnace oil is supplied to producers.

 The committee shall meet again on June 18 to deliberate upon the responses from all the line ministries, divisions and authorities, for setting the power generation target of 14,000MW. The committee asked the concerned ministries and their Secretaries to bring the load-shedding management plan in the light of the projected target of 14,000MW, in the next meeting. The committee shall also look into the capacity utilisation enhancement, availability of gas, resources and financial requirements for the mitigation of the problem in this regard.

Published in The Express Tribune, June 16^th, 2012.