LAHORE: Lahore Electric Supply Company (Lesco) is all set to repatriate captive power plants (CPPs) to the national grid ahead, a move that has sparked widespread outrage and concern among manufacturers.
While terming it an existential threat, the manufacturers have disputed the government’s classification of 11Kv feeders as "independent," arguing they are "dedicated feeders" due to shared infrastructure and structural limitations. They have further claimed that existing sanctioned loads meet demands, rendering repatriation unnecessary.
It may be noted that the Lesco has designed the repatriation plan, citing reduced circular debt and increased transparency. As per plan, gas facilities would be withdrawn from the CPPs but the manufacturer believes that it would increase production costs, compromise steam generation, and force reliance on expensive diesel generation.
Further, they said, this proposal would devastate their manufacturing units, making them uncompetitive globally. Therefore, they have urged the government to reconsider keeping in view the phenomenon of job losses, negative economic impact and a compromised global competitiveness of the industry.
They have stressed the competent authorities to arrive at a well informed decision in the best interest of industries with cogeneration captive power/captive power, as withdrawal of gas facility will have catastrophic consequences on these industries.
Further, they said, grid supply is substantially more expensive than gas which would escalate production costs.
Meanwhile, continuity of the grid supply is another cause of concern for the industrial units, which is unreliable as overhead grid supply systems are exposed to numerous kinds of hazards in addition to faults and shutdowns for maintenance of 11Kv feeders and grid station.
During grid supply interruptions, said manufacturers, they would be left with no other option but to switch to diesel generation, which would cost them Rs100/kWh. Hence, this would surge their production costs and the inevitable power outages would further wreak havoc with the fate of cogeneration captive/captive power industries. Also, higher costs will render their uncompetitive in the international market and power failures would jeopardize export orders and foreign exchange earnings.
Copyright Business Recorder, 2024