The Nation ....................................................................................................................................................October 19, 2011
ISLAMABAD - With the fast declining of power generation and increasing gas shortage in the country, the consumers will have to bear the brunt as last resort to face worst power and gas outages expected during the upcoming winter season, sources said on Tuesday.
Despite putting heads together by the concerned quarters to find a way out of cash constraints, efficiency and policy issues pertaining current energy crisis hampering full capacity utilisation in the power sector and gas sector, power shortfall has been once again touching the alarming height to take the country into utter darkness while around 4 billion cubic feet gas shortage against the demand in peak winter would likely to add woes and worries of consumers, thus this mounting energy crisis will be enough to make the upcoming winter an awful account for the general public as a whole.
The people should get ready to bear another severe energy crisis very soon as apparently in the absence of appropriate measures to counter the fast increasing outstanding dues of IPPs have forced them to reduce their production as well as gas shortage against swelling demands so another long hour power loadshedding and gas crisis is expected very soon to mock and haunt the economy of the country particularly of a common man already over burdened with double digit inflation and high ceiling oil, gas and electricity rates. However, SNGPL MD is harping an interesting tune about expected gas shortage in winter. SNGPL MD Arif Hameed, while ruling out any sort of unscheduled load-shedding in future, has reportedly said that a massive gas loadshedding awaits industrial consumers in Punjab this winter as the province faces a severe gas deficit at the moment. Currently, the country is facing a shortage of 1.52bcf, which would further jumped up to 4bcf during approaching Dec to February being considered peak hours for both utilities of the country ie SNGPL and SSGCL, sources said. Ministry so far could not released the outstanding dues worth in billions to IPPs which were earlier promised by Power Ministry in a written guarantee after consultation with the Ministry of Finance, sources privy to the development informed, adding, that power crisis will worsen in future.
with each passing day if concerned quarters do not put house in order. Currently electricity shortfall is touching the alarming figures of 4,000MW only because of outstanding dues lying pending with the government from a long time, sources added. “Ministry of Water and Power was scheduled to pay these outstanding dues worth Rs28b to IPPs till 15th October but after failing to meet the target in this regard, payment date has been now extended to 31st October, sources said.
It is testimony of the fact that waking up to the issue of spiralling outstanding dues of independent power producers (IPPs) after evading it from a long time, the government assured IPPs of taking steps to pay outstanding dues of Rs 31 billion before the expiry of their notices which invoked sovereign guarantees for power projects.
Minister for Water and Power Syed Naveed Qamar during a meeting to discuss the issues of IPPs with the IPP Advisory Council (IPPAC) Chairman Abdullah Yousaf on 13th September, has given the assurance of payments which so far could not be materialised to help and facilitate the IPPs to cope with escalating power shortage in the country.
It was also learnt that the Pakistan Electric Power Company (Private) Limited (PEPCO) on the other hand has also decreased daily payments up to 70 per cent to the IPPs. After witnessing delay in payments of outstanding dues that has contributed worries to the IPPs of the country resultantly power plants facing shortage of financial constraints are now trapped in a difficulty how to buy the furnace oil to run businesses in a bid to meet the soaring demands of electricity in the country. Further, the IPPs that produce around 5,205MW per day have reportedly threatened to close down their operations, as they are unable to generate power due to unavailability of funds to procure fuel. Currently, independent power producers are generating electricity as per the availability of funds on a daily basis, sources said, adding, that PEPCO has also curtailed the daily payments by 70 percent. “ The cash flow deficit faced by the power sector had surged to Rs418 billion, revealing the poor management of the power sector, they said, adding, that currently, the power sector is facing a circular debt worth Rs302 billion that continues ascending trend in the wake of managerial negligence and inefficiency.
It is worth mentioning here that according to exclusively available break up of outstanding dues of Power Distributing Companies, the Pakistan Electric Power Company (Private) Limited has to pay outstanding dues worth Rs303b to several oil and gas sector organisations while Lahore Electric Supply Company has to pay Rs 32.361b and Kot Addu Power Company Limited has to pay Rs 13.153b to the Central Power Purchase Agency. Similarly, a heavy amount worth Rs 27.270b is pending against the Faisalabad Electric Supply Company while the Islamabad Electric Supply Company has to pay Rs 8.662b and the Multan Electric Power Company has to pay Rs 72.445b to CPPA. Additionally, both Peshawar Electric Power Company and Tribal Electric Supply Company has to pay Rs 15.088b, Hub Power Company Rs 114.515b and Karachi Electric Supply Corporation has to pay Rs 77.855b to the Central Power Purchase Agency (CCPA). However, sources informed that the power companies, in turn, are waiting for Rs210 billion from the state-owned Pakistan Electric Power Company (Pepco), the firm created by the government to manage the finances in the power sector, including the disbursement of subsidies and losses etc promised by Islamabad in the past.