A.Rafay
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ISLAMABAD: In order to meet the higher demand for power, the government has spent Rs 138.213 billion on different power generation projects and has managed to generate 2,996 megawatts (MW) extra in the last five years, sources in the Ministry of Water and Power told Daily Times, on Tuesday.
The government spent Rs 38.729 billion in government-owned power generation companies (GENCOs) for investment in new power plants, Rs 47.600 billion in National Transmission and Despatch Company (NTDC) for improvement of transmission network and Rs 51.884 billion in distribution companies for revamping of their 132 KV, 11 KV and Low Voltage Network.
The sources said that these expenditures enabled the government to transmit output of 2,996 MW of the new power plants to load centers, providing capacity for accommodating future increase in load demand and removing transmission network constraints to allow distribution of power to constrained areas of main load centres and Balochistan.
The government has also spent the amount in improvement and revamping of power distribution companies (DISCOs) networks for meeting load demand, accommodating new connections and reducing losses. In addition, the government has spent generously under the head of subsidy to mitigate electricity crisis in the country and spent Rs 701.2 billion in the last five years.
The subsidy injection enabled DISCOs to pay the outstanding bills of independent power producers (IPPs) to overcome fuel shortage. This crisis mitigation effort resulted in an overall increase in electricity generation and electricity consumption by 10 percent over the last three years and 3.0 percent per annum on compound growth basis.
In addition the works of village electrification and new connections were facilitated. Consequently 57,777 villages were electrified and 3.926 million connections were installed.
The government has not failed to control the power crisis. The government has successfully increased generation capacity in last four years by 2,996 MW. The present crisis however is due to circular debt, shortage of water and constraints in supply of gas. The effect of circular debt was mitigated to a considerable extent by subsidy payments. In order to resolve the issue once and for all, the prime minister has appointed a Ministerial Committee headed by finance minister.
Besides, the government is undertaking a comprehensive reform process to eliminate inefficiencies of the power sector and to build its capacity to deal with such complex issues. The energy conference presided over by the prime minister was also an effective measure. The provinces have agreed to energy conservation measures. The gas allocation to power sector has also improved.
Independent or third party audit of the investment made on thermal, hydel generation, NTDC and DISCOs is conducted by the office of Water and Power Development Authoritys Director General Audit and his findings are regularly submitted to Public Accounts Committee for adjudication, the sources maintained.
Receivables and payables are part of utility business. At present Rs 420.61 billion is receivable and Rs 487.93 billion is payable. The outstanding payment of IPPs and other generators affect their capacity to purchase fuel and other supplies. However, DISCOs receivables (Rs 420.61 billion) if realised can clear these outstanding payments. Efforts are being made to recover outstanding bills from private consumers as well as from government to achieve this objective.
In the past due attention had not been given for development of hydropower resources. Moreover, gas for power sector is not available as per requirements. On the other hand demand of supply is increasing day by day, which is due to growth in economy caused by governments policies for economic growth. The prices of furnace oil are highly fluctuated with the international market prices.
So, the present government is striving to provide uninterrupted electricity on affordable rates.
Short-term measures: These measures include timely release of subsidy to power sector, effective measures through reduction of losses and improvement in recovery position. Around Rs 142 billion and Rs 82 billion debt swap payment will be made for outstanding dues of power generation companies in fiscal years 2011-12 and 2012-13, respectively.
Medium and long-term measures: In these measure hectic efforts to get maximum gas for power plants from own resources as well from neighbouring countries are being made. Capacity improvement in existing power generation facilities, improvement in the efficiency of power plants and installation of hydel and coal power plants while conversion of oil-based plants to coal based are also being made.
Daily Times - Leading News Resource of Pakistan
The government spent Rs 38.729 billion in government-owned power generation companies (GENCOs) for investment in new power plants, Rs 47.600 billion in National Transmission and Despatch Company (NTDC) for improvement of transmission network and Rs 51.884 billion in distribution companies for revamping of their 132 KV, 11 KV and Low Voltage Network.
The sources said that these expenditures enabled the government to transmit output of 2,996 MW of the new power plants to load centers, providing capacity for accommodating future increase in load demand and removing transmission network constraints to allow distribution of power to constrained areas of main load centres and Balochistan.
The government has also spent the amount in improvement and revamping of power distribution companies (DISCOs) networks for meeting load demand, accommodating new connections and reducing losses. In addition, the government has spent generously under the head of subsidy to mitigate electricity crisis in the country and spent Rs 701.2 billion in the last five years.
The subsidy injection enabled DISCOs to pay the outstanding bills of independent power producers (IPPs) to overcome fuel shortage. This crisis mitigation effort resulted in an overall increase in electricity generation and electricity consumption by 10 percent over the last three years and 3.0 percent per annum on compound growth basis.
In addition the works of village electrification and new connections were facilitated. Consequently 57,777 villages were electrified and 3.926 million connections were installed.
The government has not failed to control the power crisis. The government has successfully increased generation capacity in last four years by 2,996 MW. The present crisis however is due to circular debt, shortage of water and constraints in supply of gas. The effect of circular debt was mitigated to a considerable extent by subsidy payments. In order to resolve the issue once and for all, the prime minister has appointed a Ministerial Committee headed by finance minister.
Besides, the government is undertaking a comprehensive reform process to eliminate inefficiencies of the power sector and to build its capacity to deal with such complex issues. The energy conference presided over by the prime minister was also an effective measure. The provinces have agreed to energy conservation measures. The gas allocation to power sector has also improved.
Independent or third party audit of the investment made on thermal, hydel generation, NTDC and DISCOs is conducted by the office of Water and Power Development Authoritys Director General Audit and his findings are regularly submitted to Public Accounts Committee for adjudication, the sources maintained.
Receivables and payables are part of utility business. At present Rs 420.61 billion is receivable and Rs 487.93 billion is payable. The outstanding payment of IPPs and other generators affect their capacity to purchase fuel and other supplies. However, DISCOs receivables (Rs 420.61 billion) if realised can clear these outstanding payments. Efforts are being made to recover outstanding bills from private consumers as well as from government to achieve this objective.
In the past due attention had not been given for development of hydropower resources. Moreover, gas for power sector is not available as per requirements. On the other hand demand of supply is increasing day by day, which is due to growth in economy caused by governments policies for economic growth. The prices of furnace oil are highly fluctuated with the international market prices.
So, the present government is striving to provide uninterrupted electricity on affordable rates.
Short-term measures: These measures include timely release of subsidy to power sector, effective measures through reduction of losses and improvement in recovery position. Around Rs 142 billion and Rs 82 billion debt swap payment will be made for outstanding dues of power generation companies in fiscal years 2011-12 and 2012-13, respectively.
Medium and long-term measures: In these measure hectic efforts to get maximum gas for power plants from own resources as well from neighbouring countries are being made. Capacity improvement in existing power generation facilities, improvement in the efficiency of power plants and installation of hydel and coal power plants while conversion of oil-based plants to coal based are also being made.
Daily Times - Leading News Resource of Pakistan
