PM’s adviser on finance says premier Khoso has decided to leave the task for the next govt. PHOTO: ARIF SOOMRO/EXPRESS/FILE
The interim federal government has announced it will not raise the power tariff and leave the task for the next elected government.
“The finance ministry would have liked to raise the tariff in the current scenario, but the Prime Minister has decided not to do so till the elections,” said Adviser to the Prime Minister on Finance Dr Shahid Amjad Chaudhry at a joint news conference with Petroleum Minister Suhail Wajahat and Water and Power Minister Musadik Malik on Friday.
The PM’s adviser announced that the government has decided to provide an additional Rs45 billion subsidy to power consumers. He added that following Prime Minister Mir Hazar Khan Khoso’s instructions, the finance ministry will release Rs10 billion from the aforementioned amount in the next few days. The remaining Rs35 billion, meanwhile, would be arranged next month. According to Chaudhry, the move is intended as a short term solution for reducing the load-shedding hours.
“The Prime Minister has also approved the recommendations of the ministerial level committee which would enable us to add 2,900MW to the national grid in a week’s time,” announced Chaudhry, adding that 1,200MW would be available immediately while the remaining 1,500MW would be added to the grid in a week.
The different measures recommended by the committee include the provision of 150 mmcfd of gas to power plants.
“We will be able to cover 75% of the power shortfall after adding this power to the system,” he maintained. However, Chaudhry added that they could not guarantee there would be an end to load-shedding. He also warned that the power demand could also jump to 16,000MW due to changes in the weather.
While the adviser and the two ministers did not disclose any details regarding where the 150 mmcfd of gas will be diverted from, sources have told The Express Tribune that 50 mmcfd gas will be diverted from the Engro fertiliser plant and the remaining amount would be obtained by increasing the number of CNG holidays by one more day.
At present, CNG and Industrial sectors receive no supply for four days a week.
“Gas may be provided for CNG for two days against the current three days in a week in Punjab. The industrial sector will receive gas for two days, as opposed to the current three days, according to the plan approved by the Prime Minister,” the sources added.
Speaking at the conference, Water and Power Minister Malik said the power generation system had become unsustainable since power was being generated at Rs13-14 per unit against a sale price of Rs3-8 per unit. He added that the ministry needed Rs10 billion to obtain fuel for adding 1,100MW to the national grid.
The minister was optimistic about increasing power generation capacity, though. He said the supply of 150 mmcfd of gas would provide around 800MW to the grid. He was hopeful that hydel generation would increase next month as well.
Malik also said that the ministry would evaluate the efficiency of power plants in the country and shut down those with poor efficiency rates.
Meanwhile, Chaudhry said the government is exploring options to improve the recovery of power bills.
“We will propose some new taxation for the upcoming government to incorporate in the next budget if power rates are increased,” he said, adding that the interim government would also suggest measures for resolving circular debt and modernising the power sector to the next government.
Published in The Express Tribune, April 27th, 2013.
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