Power minister's flawed power dream

06 Jan, 2010

The Federal Minister for Water and Power Raja Parvez Ashraf, while briefing the media at the National Power Control Centre, reiterated his earlier contention that the ongoing energy shortfall, resulting in massive loadshedding throughout the country, cannot be attributed to the flawed policies supported by his ministry.
His basic argument was two-fold. First, his ministry's proposal to meet the energy shortfall in the short-term, through setting up the highly controversial gas-powered Independent Power Projects (IPPs) has been delayed due to a gas shortage in the country. Critics would of course challenge the feasibility of any measure that fails to take account of a looming input shortage, or in this instance, a significant gas deficiency.
It is pertinent to note that the minister had earlier given the last day of 2009 as the deadline for ending loadshedding, but the consequent controversy over the need for greater transparency in the allocation of contracts, as well as the actual shortfall that needed to be filled in the short-term by expensive rental projects were cited by him as impediments to the fulfilment of his commitment.
His claim found few takers in this country, for the simple reason that the controversy behind awarding the IPP contracts was fuelled by the ministry's decision to violate procurement rules and regulations by changing the conditions as contained in the tender, without first re-tendering, as required.
Second, the minister revealed that the reason for the current electricity shortfall has been a decline in hydro-generation at the Tarbela and Mangla dams, due to the annual closure of water release for desilting of canals. His critics would no doubt dismiss this explanation as misleading at best as the activity related to desilting is an annual event and hence the Water and Power Ministry should have been prepared for this eventuality.
That the country is back to square one in terms of loadshedding over twenty-two months after Raja Parvez Ashraf took over control of the ministry is, according to general perception, an indication of his inability to meet his own publicised targets, based on the energy demands of this country. Or in other words, either a new innovative approach needs to be formulated to deal with the energy crisis or the minister must tender his resignation. What is clearly evident is that neither is on the cards.
Raja Parvez Ashraf has extended the deadline for ending loadshedding by the end of the current fiscal year ie 30 June 2010. By that time somehow, miraculously, gas loadshedding would decline, a view based on lower household demand for gas in summers, and the IPPs would then become functional. He, of course, has failed to take into consideration the fact that in summers, energy demand peaks, while next winter the gas shortage is likely to continue, thereby reducing supply.
To add fuel to the fire of public discontent, with respect to the energy shortfall, are the increasing energy bills that are eroding the value of each rupee earned of the domestic consumer; and making our products uncompetitive, both in the international and the domestic market, as a consequence of higher energy costs payable by our industrial consumers.
The government can no longer lay the blame for the ongoing crisis on the former government - that is simply not tenable twenty-two months after it took over control. While it is accurate to state that the former government was guilty of not investing any significant amounts towards energy generation, yet the present government must take full blame for the inter-circular debt that has once again begun to compromise the capacity of the power sector to pay for their inputs ie crude imports. Action! Not words.

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