LAHORE, Jan 8: Contrary to the government assurances, the Pakistan Electric Power Company (Pepco) continues facing a deficit of 3,500MW — over 30 per cent of its demand — resulting in eight-hour loadshedding in urban areas and even more in the countryside.

The major cause of the deficit is low hydel generation because of restricted water releases. On Tuesday, the company generated only 1,600MW during peak hours.

“Compare it with last year’s generation and picture becomes clear,” says a company official. Last year, the company was getting 3,200MW on the corresponding day. Had the company been getting same load this year, the deficit would have been below the manageable margin of 2,000MW, he said.

The thermal generation was also causing another deficit of 600MW, he said and added: “On the corresponding day last year, the company was generating 2,700MW against 2,100MW on Tuesday (this year). Thus, a cumulative deficit of 2,200MW has come from these two sources. Take it against the backdrop of load growth of 400MW this year, it is easy to decipher current power crisis in the country.”

With partial oil and gas supplies restored, the company has been able to bring deficit down by 600MW, which at one point of time had risen to 4,100MW. But, it was finding it hard to press it further down to a manageable level, says another official. Supplies to steel furnaces have already been stopped, thus saving 450MW. From today, supplies to shops and markets would also be switched off and another saving of 350MW was expected. “Despite all these steps, which are being taken at the cost of industry, the deficit stubbornly remains stuck at 3,500MW. By tomorrow, it should come down to the region of 3,000MW, which would still necessitate seven-hour loadshedding if further conservation measures are not adopted,” he said.

“The company paid Rs16 billion to independent power producers, which is 50 per cent of their dues, on the last day of last month,” says Munawar Baseer Ahmad, managing director of PepCo. That means that default threatening sovereign guarantees was over and the IPPs should be able to pay for their oil purchases. Though this was a load arranged by the federal government, it has seen off immediate threat, and should help them build oil stocks and improve generation.

In addition to that, the company has also asked the government for rationalisation of tariff as allowed by the National Electric Power Regulatory Authority (Nepra) in its last decision. It allowed 33 per cent increase, but the government allowed only 10 per cent, leaving a gap of 23 per cent. The company was not pressing for a jump of 23 per cent, but for some breathing space to bring fiscal deficit down, and improve generation, he concluded. — Ahmad Fraz Khan