Before cutting off gas connections, the government wants to conduct an audit of captive power plants to determine their efficiency levels, but Nepra insists it already has relevant data and there is no need to conduct a fresh audit, which would be a waste of time. PHOTO: FILE
ISLAMABAD:
The Planning Commission has suggested that supply of gas to captive power plants should be stopped and the saved resource be provided to efficient power plants in order to tackle the worsening power crisis, a proposal that comes in line with the views of National Accountability Bureau that considers gas supply to inefficient plants a criminal act.
The suggestion came in a meeting at NAB headquarters in Islamabad that reviewed the performance of captive power plants, say sources.
During the deliberations, the Planning Commission and National Electric Power Regulatory Authority pointed out that gas was being supplied to less efficient power plants at the cost of efficient ones, which were being forced to run on expensive alternative fuel like diesel, leading to a huge increase in cost of electricity production.
Had gas been diverted to the more efficient plants, it would have added a considerable quantity of electricity to the system at a far lesser cost, they stressed.
Before cutting off gas connections, the government wants to conduct an audit of captive power plants to determine their efficiency levels, but Nepra insists it already has relevant data and there is no need to conduct a fresh audit, which will be a waste of time.
Gas distributing companies are supplying 450 million cubic feet per day (mmcfd) to captive plants of industrial units, depriving efficient power plants of the scarce resource. Some of the efficient plants with a combined capacity of 800 megawatts have suspended electricity production in the absence of gas since June 2011.
However, the government still seems reluctant to divert gas from inefficient plants to efficient ones.
Rather than severing gas connections of captive plants of the influential lobby of textile industry, the caretaker government has targeted compressed natural gas (CNG) filling stations by placing a ban on use of CNG in vehicles of over 1,000cc engine capacity.
Participants of the meeting also noted that some captive plants with the help of gas produced cheap electricity, but they sold it at higher rates, making hefty profits in the process.
Terming it a criminal act, NAB chairman called for a thorough probe into the matter and asked the Ministry of Petroleum and gas utility companies to provide a list of captive plants involved in the practice.
Planning Commission’s Member Energy said the Economic Coordination Committee (ECC) of the cabinet had decided to conduct the audit of captive plants but the plan could not be pushed ahead.
Published in The Express Tribune, May 24th, 2013.
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.... However on the issue of stoppage of gas to captive power units, the Industry view point is also very interesting. They admit that captive power generation is less efficient i.e. to the tune of around 35% level of efficiency vis-a-vis efficient plants having efficiency level of around 45-50%. Nevertheless, if the line losses and the circular debt impact is taken into account, the 100% cost paying captive power plants become viable....