Islamabad, Aug 7: Federal Minister for Power Awais Leghari has stated that for the next two months, new power incentive packages will be introduced by the federal government.Two of the programs, the “Winter Months Package” and the “All Year Incentivized Package,” are designed to increase industrial energy usage and alleviate existing power shortages.
In an effort to improve industrial efficiency, the government is also looking at how much electricity is consumed at night in order to offer lower prices during off-peak hours. Notably, Rs. 60 billion has been set aside for automated transformers, which would enable selective shutdowns rather than total feeder failures, guaranteeing compliance users a constant supply of electricity.
Leghari took issue with how the previous administration handled Independent Power Producers (IPPs). He disclosed that an initial examination of IPP matters, spearheaded by Muhammad Ali, who is currently the Prime Minister’s Special Assistant on Power, was superficial and needed more investigation.
Leghari mentioned the importation of 6,500MW of solar power for off-grid use last year in response to the high cost of electricity. He forewarned that the high fixed expenditures and interest payments associated with new hydropower projects would make them expensive, with estimated per-unit expenses of Rs. 20–25.
IPPs are causing an impending crisis, according to Senator Mohsin Aziz, Chairman of the Senate Standing Committee on Power. The committee demanded comprehensive information on the establishment and operating concerns of IPPs as well as a comparative study of the prices of power in nearby nations.
Leghari promised to make data available and encouraged the National Accountability Bureau to look into payments of Rs. 480 billion in 2013 as soon as possible. The committee emphasized the need of strengthening load-shedding recovery agreements with provincial authorities and addressing power theft in certain provinces.
Secretary of Power Division Rashid Mahmood Langrial stated that installed capacity had decreased to 39,000 megawatts, and that decreased hydel production had caused power generation to decline to 29,000 megawatts in June. In order to lower capacity payments and meet demand, he claimed, the government intends to close five factories.
Langrial attacked the government’s intention to supply electricity from the national grid in order to maintain consistent pricing across the nation, as well as K-Electric’s exorbitant power producing expenses.
