ISLAMABAD, Oct 7: Prime Minister Shaukat Aziz has sought a report on furnace oil requirement of the power sector during the October-December period of the current year that has increased manifold owing to water shortage and would cost an additional $100 million.
Informed sources said the government is considering to absorb around Rs6 billion additional cost arising out of extraordinary water shortage in the coming season instead of passing it on to the consumers through power tariff.
The sources said the prime minister had a meeting with Minister for Water and Power Liaqat Ali Jatoi on Wednesday to consider the implications of the additional burden.
The sources said the government felt that increase in power tariff would have multi-faceted impact on economy and the consumers, who are already burdened, should continue to enjoy some relief, although the government is coming under increasing fiscal pressure owing to rising oil prices and increased demand for fuel oil.
The sources said the prime minister had asked for month-wise fuel oil requirement of each generation company and independent power producer and supply line arrangements including international prices.
Accordingly, the generation companies (Gencos) of Wapda have been asked to submit their fuel oil requirements for the next three months to ascertain the exact amount of additional burden on foreign exchange reserves. The Gencos have informed the government that they have ensured required fuel supplies for the next three months.
During fiscal year 2003-04, Pakistan imported around $50 million worth of fuel oil owing to a better hydrological conditions but just three months of this year are estimated to consume about $100 million under this head to import around 450,000 tons of furnace oil.
The IPPs and power generation companies (Gencos) of Wapda have assured to maximize their output during winter season to avoid load shedding by reducing their maintenance period.
The power minister held a meeting with Gencos and IPPs on Thursday to facilitate them in making available additional power generation capacity. As of now, the available power capacity is about 11,000-mw against an installed capacity of about 18,000-mw.
The power producers also assured that the plants would not be shut down for a long period due to minor repair and extended all possible support to keep plants running.
The meeting decided an independent survey of maintenance of power plants by Nespak or any other consultancy firm, which will formulate the maintenance and repair schedule for the plants.
The shut down and maintenance of all the plants would be carried out only with prior information to the Wapda in order to make alternate arrangements for un interrupted supply of power.
The Ministry of Petroleum has also been asked to ensure supply of furnace oil and gas to the power producers. An official announcement said the minister told the power producers that current year was very difficult in terms of water shortage in reservoirs, which would lead to power problems.
He asked the power producers to avoid any shut down in November, December and January, which is low water period. He said that the people who are paying bills should be given facilities and there should be no concept of load-shedding and they should not suffer due to load shedding.
Mr. Jatoi said the new investment would also be welcomed and would be facilitated to the maximum extent to meet the future domestic, commercial and industrial requirements.
The meeting was attended also by secretary, Water and Power, special secretary, Water and Power, chairman, Wapda, MD, PPIB, Representatives of all the IPPS and CEOs of Gencos.