Winter plan: Govt to cut 300MW of power supply to KESC
To cover the shortfall, the power utility will get furnace oil at subsidised rates.
ISLAMABAD:
The government is planning to cut 300 megawatts of power supply to the Karachi Electric Supply Company (KESC) for three months beginning December under the power load management plan for winter to offset the impact of a decline in hydropower generation, say sources.
Government officials have proposed the three-month reduction in power supply to KESC from 650 megawatts to 350MW as a stopgap arrangement in an attempt to ease pressure on the National Transmission and Dispatch Company (NTDC).
KESC officials insist NTDC cannot curtail supply permanently in the wake of a five-year power purchase agreement between the two entities that will last until 2015.
Every winter, the Indus River System Authority (Irsa) curtails water releases from the reservoirs including Mangla and Tarbela from December 20 to January 31 because of annual closure of canals for cleaning. This leads to a decline in hydropower generation from the normal level of 6,500 megawatts to 1,500MW.
Gas companies also cut supply in winter to those power producers, which have nine-month gas supply agreements with them, affecting electricity production.
Punjab, which bears the major brunt of power shortages, has been pressing the central government for months to reduce power supply to KESC, saying it will help ease the power crisis in the province. However, Sindh resists the pressure, arguing the cut in power supply will add to the miseries of the people of Karachi.
According to the sources, the government, as an alternative, is expected to provide refined furnace oil at a subsidised rate to the Bin Qasim Power Station of KESC that will help the company generate an additional 300MW during the three months of winter.
The proposed plan says Pakistan State Oil (PSO) will supply the required refined fuel oil to the Bin Qasim Power Station and send the cost invoice to NTDC, which will be responsible for the payment.
NTDC will send the invoice to KESC at average rate of distribution companies for the power drawn from the NTDC system plus the power generated and supplied by Bin Qasim Power Station to KESC.
KESC will not charge operating and maintenance cost of the power station from NTDC. KESC will file claims for tariff differential subsidy at the end of each month.
On October 22, officials said the company was to receive Rs118.94 billion from federal and provincial governments and residential, commercial and industrial consumers.
The central government, its departments and bodies owe Rs41.68 billion to KESC in tariff differential claims and general sales tax (GST) refund. Of this amount, the tariff differential claims were Rs37 billion.
The Sindh government owes Rs26.12 billion to KESC and residential, commercial and industrial consumers are to pay Rs51.14 billion.
On the other hand, KESC is to pay Rs62.96 billion to power, gas and oil suppliers.
Published in The Express Tribune, November 9th, 2012.
The government is planning to cut 300 megawatts of power supply to the Karachi Electric Supply Company (KESC) for three months beginning December under the power load management plan for winter to offset the impact of a decline in hydropower generation, say sources.
Government officials have proposed the three-month reduction in power supply to KESC from 650 megawatts to 350MW as a stopgap arrangement in an attempt to ease pressure on the National Transmission and Dispatch Company (NTDC).
KESC officials insist NTDC cannot curtail supply permanently in the wake of a five-year power purchase agreement between the two entities that will last until 2015.
Every winter, the Indus River System Authority (Irsa) curtails water releases from the reservoirs including Mangla and Tarbela from December 20 to January 31 because of annual closure of canals for cleaning. This leads to a decline in hydropower generation from the normal level of 6,500 megawatts to 1,500MW.
Gas companies also cut supply in winter to those power producers, which have nine-month gas supply agreements with them, affecting electricity production.
Punjab, which bears the major brunt of power shortages, has been pressing the central government for months to reduce power supply to KESC, saying it will help ease the power crisis in the province. However, Sindh resists the pressure, arguing the cut in power supply will add to the miseries of the people of Karachi.
According to the sources, the government, as an alternative, is expected to provide refined furnace oil at a subsidised rate to the Bin Qasim Power Station of KESC that will help the company generate an additional 300MW during the three months of winter.
The proposed plan says Pakistan State Oil (PSO) will supply the required refined fuel oil to the Bin Qasim Power Station and send the cost invoice to NTDC, which will be responsible for the payment.
NTDC will send the invoice to KESC at average rate of distribution companies for the power drawn from the NTDC system plus the power generated and supplied by Bin Qasim Power Station to KESC.
KESC will not charge operating and maintenance cost of the power station from NTDC. KESC will file claims for tariff differential subsidy at the end of each month.
On October 22, officials said the company was to receive Rs118.94 billion from federal and provincial governments and residential, commercial and industrial consumers.
The central government, its departments and bodies owe Rs41.68 billion to KESC in tariff differential claims and general sales tax (GST) refund. Of this amount, the tariff differential claims were Rs37 billion.
The Sindh government owes Rs26.12 billion to KESC and residential, commercial and industrial consumers are to pay Rs51.14 billion.
On the other hand, KESC is to pay Rs62.96 billion to power, gas and oil suppliers.
Published in The Express Tribune, November 9th, 2012.