ACCI demands allowing private power generation

President slams govt ineptitude; says inefficiency sinking the economy.

ISLAMABAD: Attock Chamber of Commerce and Industry (ACCI) President Tariq Mehmood has demanded that the constitutional restriction that bars provinces and the private sector to generate more than 50 megawatts of electricity without federal government approval be lifted.

The ACCI president, in a statement issued on Monday, has said that the government should take the step to resolve the energy crisis so that economic downturn can be contained.

Moreover, he complained that bureaucratic inertia is highly discouraging for the private sector, which wants to generate electricity to prevent closure of their industry.

“The government has failed to tackle the [electricity] shortfall due to lack of efficiency, resources and capacity,” he said.

He said the energy crisis demands out-of-the-box solutions, but authorities are not ready to accept any changes – which has resulted in monumental losses in distribution, transmission, collections and deliberate theft.

Tariq Mehmood claimed major power plants of country are running below 17% efficiency, which is a result of resisting reforms proposed by international institutions.

“The major problem with the energy sector is not of generation, but inefficiency and mismanagement. The circular debt speaks volumes about their skills,” he said.

He stated that Pakistan’s energy mix is steadily tilting in favour of thermal generation – the most expensive means of power production – while cheaper alternatives are not receiving due attention.

Tariq Mehmood – who is also Director of the Pak-UK Business Council and Chairman of the Federation of Pakistan Chamber of Commerce and Industry Committee on Health – said that conspiracies have hindered power generation from coal for years, which he termed unfortunate.

“The share of coal in global electricity production remains at the top, with a 40% share. The US satisfies 50% of its demand through coal; while China and India satisfy 79% and 69% demand from coal-based plants,” he claimed.

Published in The Express Tribune, July 19^th, 2012.