KARACHI, Mar 10: Hydel power generation during the first five months of the current financial year (July-November) stood at 1,736mw, which represented 18.9 per cent increase over 1,460mw of power generated through that natural and cheaper source.

A report prepared by Faisal Jiwani, analyst at Capital One Securities stated that Hydel-Thermal power generation ratio improved to 7.9 per cent from 6.9 per cent in the same period last year.

The reason that hydel power plants were able to generate more electricity, was chiefly attributed to a good monsoon season, which had resulted in peak water levels in dams.

As cheaper thermal power was abundantly available, all six thermal power unit listed at the Karachi Stock Exchange: Southern Electric; Japan Power; Sitara Energy; Southern Electric; Kohinoor Energy and Altern Energy, experienced dip in sales revenue and a squeeze on their bottomline in the first half of the current year.

Excepting Sitara Energy, which almost maintained its capacity utilization, the rest of the five plants saw considerable drop. Kohinoor Energy utilized its capacity to the extent of 13 per cent in the first half of FY04, down from 32 per cent utilization in the corresponding period of the previous year.

Capacity utilization at Hub Power Company-the 1,292mw largest Independent Power Producer (IPP) in the country- declined to 12 per cent, from 23 per cent; that of Southern Electric to 22 from 40 per cent.

Japan Power could utilize its capacity to the extent of 38 per cent, which was lower than 49 per cent utilization in the similar six months of FY03 and capacity utilization at Altern Energy slipped to 37 per cent from 49 per cent.

Total power generation (hydel and thermal combined) increased to 4,006mw in the first five months of FY04, from 3,756mw in the corresponding period of the previous year, indicating growth of 6.7 per cent in power generation.

The analyst noted that in spite of low load factor of the private thermal power plants, their earnings remained reasonably well since under the power agreements with Wapda, the companies were compensated for any shortfalls in dispatches.

Contrary to expectations, rainfall was low subsequent to the close of the first half and water levels at Tarbela and Mangla dams had dropped to dead levels.

That appeared to have given a new lease of life to the thermal power plants, which were expected to be the chief source of energy generation, going forward. Some of the power plants have already placed orders for furnace oil till June 2004.