Government unable to improve power supply: credit line enhanced for KESC under pressure

The government has expressed inability to improve power supply situation in the jurisdiction of Pakistan Electric Power Company (Pepco), but has enhanced credit line by 100 percent for Karachi Electric Power Company (KESC) due to political pressure, sources told Business Recorder.
This was the outcome of a meeting of the Cabinet Committee on Energy Crisis (CCEC) held on Friday under the chairmanship of the Federal Minister for Water and Power Pervaiz Ashraf, who had promised to end the load shedding by the end of December 2009, failing which he would tender his resignation.
"We have enhanced credit limit of KESC from Rs 1 billion to Rs 2 billion to procure furnace oil, but there is no immediate remedy to resolve the power crisis in other parts of the country," said one of the participants of the meeting.
It was observed in the meeting that load shedding would come down after increase in water inflows into the dams, resulting in additional hydel power generation as at present the reservoirs are empty and hydel generation is at its lowest. Sources said that the meeting decided that the Finance Ministry would directly pay Rs 20-25 billion to Pepco, outstanding against other public sector organisations and provincial governments.
The meeting was told that MoF would facilitate: (i) Hesco's receivables of Rs 7 billion from Sindh government; (ii) on the same pattern, Finance Ministry will make arrangements for payment of KESC receivables from KW&SB; (iii) KESC's subsidy of Rs 9.0 billion will be paid to Pepco on behalf of KSEC; and (iv) Rs 4 billion of KESC's subsidy will be paid directly to Pepco during current fiscal year.
The committee directed PSO to enhance KESC's credit line for supply of 2000 tons of furnace oil on daily basis. The CCEC also directed PSO to continue regular fuel supply to IPPs and gencos. KESC was directed to ensure maximum power generation to limit load shedding. KESC said that there was no load shedding for industrial sector in Karachi.
Pepco MD Tahir Basharat Cheema gave detailed briefing to the committee on the current power situation and said that due to remedial measures additional power would be injected in the national grid by peak summer, after complete rehabilitation of some of the existing thermal power units, besides commissioning of some IPPs.
The CCEC reviewed the demand-and-supply situation of electricity and oil and gas position for power generation. The committee observed that power situation would improve by mid-April as a result of measures being taken by the government and also because of anticipated increase in hydel generation.
Earlier, PSO Managing Director informed the meeting that oil supply to power units would further improve as adequate oil supplies had already been procured and supply line had considerably improved. A number of financial measures were also decided to maintain adequate oil and gas supplies to this sector.
The meeting was attended by Minister for Information Qamar Zaman Kaira, Secretary, Water and Power Shahid Rafi, Secretary, Finance Salman Siddique, Additional Secretary, Ministry of Petroleum, Additional Secretary Ministry of Water and Power, MDs of Pepco, PSO, and KESC and other officials of the Ministry of Water and Power.