In order to produce cheaper electricity, construction of a big dam is a must so as to bring a quantum leap in the share of hydel power in energy mix.
Chairman Wapda Tariq Hamid stated this while speaking at the Lahore Chamber of Commerce & Industry (LCCI) here on Saturday evening.
About the energy mix, he said that total generation in Wapda system at present was around 17,000 MW including 6,000 MW produced by IPPs (which was thermal), 7,200 through hydel generation and 4,000 produced by Wapda itself through thermal generation. At present hydel generation has 35 percent share in energy mix while seven to eight years back when IPPs were not there, it was over 50 percent.
He said that Wapda was working on some projects but in all they would not be producing more than 500 MW while the country need a quantum leap. He said that Chinese company had completed initial survey for generation of 600 MW from 'Thar Coal' but it would be completed by the year 2008. Another company from Germany has also initiated work and their plant of same capacity would become operational after a year Chinese company starts it operation, he added.
In order to meet the rising demand of electricity, he said that for next three to four years, Wapda has to establish thermal plants. He added that Wapda would be striving to hold international bidding for these plants so as to avoid any complication.
Regarding building of small units of power generation, he said that the irrigation departments of respective provinces could build these units. He cited the example of units at Rasool and Nandipur, however, he maintained that these small units could not meet the rising demand of electricity.
To a question about any possibility of passing relief to consumers, he said, although Wapda would get relief from September next year, when Hubco's payment would be reduced but this relief would be made up due to increase in oil prices.
Regarding providing relief to those electricity distribution companies, which have performed well in the shape of recovery of bills and other heads, he said that in next few months 'good companies' would get relief. He said that companies had approached Nepra for re-determination of tariff, as the tariff reduction announced recently had not provided enough fiscal space to companies for maintenance of expansion.
On a point raised by the LCCI chief, on package for industrial users to adjust their outstanding bills, he said that Wapda had Rs three billion stuck up in such connections. He said that Wapda has decided to recover even 50 percent of this stuck up money and a committee had been constituted to resolve the issue of disputed amounts in such case. He said that date for recovery of these amounts could be extended if it worked well.
Earlier, the LCCI Chief, Mian Anjum Nisar called for initiating a process to provide more cheap power to industry. Such a trend would benefit Pakistan in the longer run. The power rates of Wapda should be brought down to Rs 3 per unit (including all taxes and service charges) for industries. LCCI demands for cheaper power for industries to compete with foreign companies in both local and international markets, he added.
He demanded immediate removal of MDI charges, increasing time limit for industrial users to adjust their outstanding bills, improving its service standards including tripping and fluctuation. He said that the government should prioritise projects of cheaper source of power production including micro hydel.
Former FPCCI president, Iftikhar Ali Malik speaking on this occasion also called for construction of big dams. He was of the view that Wapda must provide cheaper electricity in new industrial areas. He said that Wapda must backup the industry to compete in post-WTO regime and also enable it to compete with India and China.