Plan to end loadshedding

By Afzal Bajwa
ISLAMABAD – Approving a crash programme of private sector generation and energy conservation plan to handle power crunch, cabinet in its special meeting on Wednesday appointed a committee for recovery of overdue electricity bills worth Rs 207 billion.

According to Minister for Water and Power Raja Pervez Ashraf who briefed the media on the meeting, the country was faced with 4000 MW shortage of electricity against the current demand. “The peak is yet to come,” he rushed to add. Therefore, he pointed to the worst of loadshedding to be required in the peak season of 90 days (June to August).

However, the fast-track power generation is expected to generate up to 1200MW within 12 to 18 months. “One to two years is the minimum installation time for the power generation facility,” he added by saying that the “cabinet decided to scrape all the procedural and documentation requirements.”

The private sector would be offered power generation up to 1000MW through an open auction in the presence of media to ensure transparency, the minister said. According to the Minister, the cabinet has decided to use the existing tariff determined by the National Electric Power Regulatory Authority. Further parties interested in power generation would be asked to match the last best bid.

The short-term crash program includes conservation strategies including setting the clock an hour ahead in order to optimize the sun light, commercial holiday management, and promotion of energy saver bulbs.

According to the break-up of the stuck up Rs 207 billion, the Federally Administered Tribal Areas (FATA) owe Rs 77 billion, prior years’ areas amount to Rs 72 billion, another major defaulter of the Water and Power Development Authority (WAPDA) is the Karachi Electricity Supply Company (KESC), and the provinces are to pay Rs 19 billion on account of electricity bills.

Earlier, the Minister described the energy conservation and generation strategy as a six point emergency plan for totally eliminating the menace of laodshedding.

Although the minister claimed that the six-point formula was evolved after thorough process of consultations with all stakeholders, it still blank about the private sector participation in hydel generation.

The conservation program includes, increasing the daylight saving time by an hour, effective 01st June, industrial units holidays on alternate days, closure of all commercial markets at 2100 hrs, no electric supply for neon signs boards, closure of half the street lights, and commercial markets to observe holidays on Fridays instead of Sundays.

Moreover the cabinet has also decided that the governmental offices including the PM secretariat and the Presidency would not be allowed to use air conditioners for three hours, starting from 0800-1100 hours.

He said that private sector would be encouraged rather than the public sector, because encouraging private sector was the basic policy of PPP.

Giving out the timeframe for awarding contracts to the private sector, the minister said the international tenders would be invited on May 20, with 15 July as the deadline. After their acceptance by the government the successful bidders would be responsible to supply the energy within 12-18 months time. Electricity supplying barges would also be imported to supply Karachi with an additional electricity of 200 MW.

Asked about the current line losses of the WAPDA, he said, they claim these to be a little over 20 per cent but “I think line losses are not less than 40 per cent.”

The Committee for the recovery of WAPDA’s outstanding amount and circular debt would include Ministers for Privatization, Ports and Shipping, Deputy Chairman Planning Commission, Secretary Water and Power, and Secretary Finance.