Ministry of Water and Power on Tuesday assured the caretaker Prime Minister Mir Hazar Khan Khoso that all efforts would be made to control loadshedding during summer. In a maiden briefing to the PPP supported caretaker Prime Minister, Additional Secretary Incharge Rai Sikandar, and Chairman Water and Power Syed Raghab Abbas gave an overview of the power sector crisis.
According to the presentation, average loadshedding is 12-16 hours as shortfall is 4,000 MW. Current generation is only 8,000 MW against demand of 12,000 MW. The four factors for lower generation were identified as: (i) lower hydel generation; (ii) lower oil supply to power plants; (iii) no gas supply to power plants; and (iv) poor management at Disco and central level. To cope with the power crisis, Ministry of Water and Power, in its immediate plan has proposed release of 5,000 cusecs of water from Tarbela to generate additional 300 MW.
The Ministry also proposed supply of 250 mmcfd gas to six Independent Power Producers (IPPs) to generate an additional 1,250 MW. The plants which can benefit from this plan (if implemented) are Rousch which will get 42 mmcfd to generate 200 MW power whereas Saif Power, Saphire, Orient and Halmore will be provided 38 mmcfd gas each to generate 800 MW (200 MW each). However Kapco will get 55 mmcfd to generate 250 MW power.
Immediate plan for addition in power generation through oil supply was as follows: (i) Kapco - 400MW by supplying 2,000 tons of additional oil; (ii) Hubco 300 MW through supply of 1,600 tons of additional oil; and (iii) Muzaffargarh 340 MW with consumption of 2,000 tons additional oil daily. This plan will provide 1,040 MW power to the national grid. Informed sources told Business Recorder that Water and Power Ministry apprised the Prime Minister that they required Rs 89 billion to procure furnace oil during the summer to keep loadshedding at a minimum.
Finance Ministry, sources said, insisted that it would be unable to pay for non recovery of dues by the Ministry of Water and Power. Secretary Petroleum also informed the Ministry of Water and Power that PSO could not deliver oil supplies without regular payment.
After some argument from the stakeholders, the meeting decided that Finance Ministry would extend Rs 51 billion for procurement of furnace oil whereas remaining Rs 32 billion would be arranged by Discos. Ministry of Water and Power promised that recovery would be improved in days to come and the Prime Minister urged PSO to increase supplies to 25,000 ton per day.
Chairman Wapda, who has been appointed as co-ordinator to power sector, has already warned all CEOs of Discos to "deliver or go home" with immediate effect. According to the immediate plan, following actions have been proposed to the Prime Minister: (i) arrangement of RFO to efficient power plants with PSO; (ii) arrangement of payment of Rs 17 billion to PSO to maintain fuel supply of 25,000 tons per day; (iii) recovery of stuck up revenue with FBR (about Rs 90 billion) ;(iv) arrangement with Finance Division for payment of regular as well as additional subsidy to power sector; (v) recovery of old receivables from consumers (Rs 100 billion), Government Departments Rs 142 billion, fuel price adjustment Rs 79 billion; (vi) NAB has been requested to recover Rs 100 billion. Defaulters lists have been provided to them; (vii) Supreme Court of Pakistan has been requested for support in FRA cases; and (viii) Provincial Government to pay through federal adjuster.
The presentation further claims that Chairman Wapda was appointed as the overall co-ordinator of power sector to improve efficiency, supervision, co-ordination and management. He has been allowed to change non performing heads of departments.
Official statement issued by the Prime Minister Media Cell says that the Prime Minister Mir Hazar Khan Khoso took notice of reports in the media about complaints made by people of Balochistan regarding frequent power outages. He has instructed the Secretary Ministry of Water and Power and Chairman Wapda to visit Balochistan and take all necessary steps to mitigate their grievances.
The Prime Minister directed the Wapda authorities that correct bills should be sent to consumers which would remove grievances of the common man on this score. The incumbent power sector team was fully backed by the Awan-e-Sadar, sources add.
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