Captive power: Industry members warn of major energy crisis

Government decides to ban power generation through gas.

FAISALABAD: Industrialists have criticised Sui Northern Gas Pipelines Limited’s (SNGPL) move to ban the use of gas generators in industrial units and called it an attempt to bring the industrial wheel to a halt. As a result the industrial production will fall to alarmingly low levels, said Chairman Pakistan Textile Exporters Association (PTEA), Asghar Ali on Wednesday at a press conference.

The government, without warning imposed a decision to stop power generation through gas generators, pushing heavy investments into scraps, said industrialists, complaining that the government has already increased the gas tariff, for captive power generation, said the chairman.

Industrialists generate their own electricity for production purposes, not for commercial purposes, said Ali. As a consequence they expressed the fear that this will lead to a massive production and financial loss to the industry. “We have imported these generators as machinery by paying all the duties and taxes”, they said.

Ali stated that the industry is already running 50% below its capacity due to energy constraints, consequently affecting the potential to grow and earn foreign exchange for the country. Industrial and trade activities have decreased due to lack of energy, he said, arguing that instead of controlling line losses and making arrangements to stop gas theft, the authorities have worsened the situation.

They claim there is no reason to stop gas generators in industries. Industrialists have approached the high court against the decision by the SNGPL. The high court considered their concerns and granted a stay order against SNGPL. They hoped that the court will rule in the favour of the industry.

The PTEA chairman said that if the decision against gas generators is not withdrawn, the industry will face massive lay-offs.

Vice Chairman PTEA, Muhammad Asif, said that industrial sector is mainly affected due to this decision despite fulfilling its national obligations by paying all taxes to the government.

“The government was contemplating an increase in the growth targets but its harsh decisions are posing a severe threat to the industrial sector”, he said.

Published in The Express Tribune, September 12^th,  2013.

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