Energy crisis: LNG import can lead to cut in power tariff
Power minister briefs media on steps taken by the government.
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. PHOTO: FILE
LAHORE:
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.
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.