Urban areas: equitable loadshedding begins

Power Distribution Companies (Discos) have begun implementing equal loadshedding on the privileged class in urban areas aimed at fair supply of electricity throughout the country, except where KESC has jurisdiction, in the light of the Supreme Court directives. The duration of loadshedding in urban areas increased because of the new formula of electricity distribution prepared in the light of apex court orders.
"We have started implementing SC''s instructions in letter and spirit regarding equitable distribution of electricity in urban and rural areas. Those areas which were facing less loadshedding are now facing more loadshedding," said, Managing Director of the National Transmission and Dispatch Company Zargham Eshaq Khan. Insiders claimed that power generation dropped to an average daily output of 11,800-12000 megawatts on Saturday from 12,800MW against a demand of not less than 17,500MW because of growing receivables. Fuel supply to Gencos was below their requirements.
Sources argued that the Ministry of Water and Power should have arranged funds for at least three days ahead of the weekend to ensure maximum generation. However, this has not been done in view of low recoveries by Discos, the sources said. On May 27 this year, the caretaker government released Rs 10 billion to the Ministry of Water and Power to maintain electricity supply at an optimum level. However, the released amount was spent in just three days and the supply situation is "back to zero". "We are facing a shortfall of not less than 6,700MW as some plants have been shut down because of fuel non-availability," said an official.
The caretaker government had approved an amount of Rs 22.5 billion to clear some outstanding dues of Pakistan State Oil (PSO) and payments to Independent Power Producers (IPPs) in May. However, the Finance Ministry had so far released just Rs 15 billion. A senior official of Ministry of Finance Ministry told this correspondent that the amount required by the Water and Power Ministry had been released. "We have released funds according to (the ministry''s) need," he insisted, implying that the remaining approved amount of Rs 7 billion as mentioned in the official announcement of Prime Minister Secretariat is unlikely to be released to the Water and Power Ministry.
He said that the government was currently negotiating with 225MW Hubco-Narowal and 235MW Liberty Power plants which had been shut down because of lack of funds. The power purchaser owes Rs 18 billion to Hubco-Narowal whereas the outstanding amount of Liberty Power is not less than Rs 11 billion. Both companies have already called sovereign guarantees. "The outstanding amount of both power companies is too high, but we are trying to persuade them to start generation with a smaller amount," the official maintained. The government has to pay a substantial amount to IPPs as capacity payment whether the NTDC purchased power or not.