A reduction in power tariff is linked with the import of liquefied natural gas (LNG), which will probably start next year. Currently, the government is producing a large share of power with diesel, costing Rs24 per unit, forcing it to pay the difference and putting an additional cost burden after increase in furnace oil prices from Rs83,000 to Rs89,000 per ton in just a few days.
This was stated by Abid Sher Ali, State Minister for Water and Power, while speaking at a press conference at the Wapda House on Saturday.
He said the government will overcome shortage of natural gas to a large extent next year with the help of imports, power shortfall will be bridged and electricity will be made affordable for the people.
He said the government was aware of repercussions of the harsh decisions pertaining to energy production. The government is doing its job with good intentions and the country will overcome the crisis, he said.
Pointing out that circular debt has increased and power losses have swelled due to multiple reasons, he said steps are being taken to address the problems. It will take time as the situation has worsened over the last many years, he added.
There are 90 feeders in the Peshawar Electric Supply Company’s (Pesco) area of operation, which suffer losses of over 90%, some as high as 99.99%, he claimed.
According to Ali, 60 feeders under Pesco consume Rs6 billion worth of power in a month even if electricity is supplied for only six hours a day.
He said a law would be presented in the next cabinet meeting to make power theft a non-bailable offence.
“We have asked state-owned power distribution companies to undertake an audit of losses in their respective areas in order to have a clear picture,” said Ali. “We want to know the exact nature of theft and losses, so we can take action against the menace and avoid penalising honest customers.”
After clearing circular debt, the government has been able to reduce outages by six to eight hours a day, he added.
Ali announced that 120-megawatt Dubair Khawar Hydropower project and 22MW Satpara Dam would be completed next month and talked about Qatari and Russian interest in coal-fired power plants at Gadani.
He was optimistic about tangible progress on these projects in the next three to four months including award of contracts.
He claimed that the deficit in supply and demand of electricity has been brought down to 1,200-1,300MW.
As hydroelectric power generation is going down rapidly due to seasonal dip in water availability, reliance on thermal power is increasing day by day, he pointed out. “Nowadays, we are producing only 2,000MW from hydro sources against peak generation of about 7,000MW.”
Published in The Express Tribune, November 10th, 2013.
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COMMENTS (8)
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LNG Import Bills is a lesser evil ?
Power ; Import ; current account deficit ; Alternative Energy Solutions and government incentives
ET request that you publish a graph showing the monthly Power Generation from its major sources: hydel, Oil and LNG +++++++++++++++++++++++++++++++ Sometimes a graph is worth a thousand words.
The Honorable State Minister is totally out of synch with the ground realities. Sitting in A/C well protected houses produce such statements. There is no theft in PESCO. The consumers pays all his bills in hard cash; in this case not to WAPDA but to the linemen which is then distributed upto the highest authority. So why blame the consumer. The consumer wants to get meters but the Disco personnel discourage them and would not hesitate from penalizing the consumer who is adamant on getting the meters.
No one can 'steal' even 1 unit of electricity without the connivance of WAPDA and Ministry, the Honorable State Minister should know this fact. If he is willing to provide meters and leash his vultures, the theft is bound to end tomorrow. I am writing this based on personally surveyed realities and not on some gup.
Lastly, if the CEO cannot handle this situation then why keep him. The Hon Minister should advertise the post and get a doer on merit. But then there must be some reasons to keep the present CEO.
Best regards, Razi 0300 500 1038
@lalakimka. another poor unemployed indian with no reason to exists,try to talk some sense,it is difficult for you but try atleast once a day,you will be cured soon :)
Sick of reading news now & then for LNG imports for last one decade , it seems we made to run after wild goose as nothing materialized the people are only give false hope .
u guys are good @ exporting strategic assets to all countries..........but now want electricity........please explain what u will do with lng and all..........hope u make no bombs....
why is Khawaja Asif not saying this? If he's just a front, why not reassign him?
This has the makings of Sharif becoming Raja LNG in the footsteps of his predecessor Raja Rental.