Last update: Thu, 19 Jan 2017 08pm

BR Research: Power Generation and Distribution


One misperception attached to the power sector is how increasing the generation capacity will bring respite to the ailing sector. What many forget is that it is not about capacity enhancements or new power generation plants but the actual generation that has remained stagnant for so many years.
The Federal Budget 2012-13 as expected had room for Gas Infrastructure Development Cess for which a provision of Rs.30 billion was made in non-tax revenue. That largely went unnoticed from the ever vigilant media eyes, as it was discussed in greater detail in the Finance Bill and not in the budget document.
First the exiting of international sponsors with International Power following Xenal and then the tax and dividend dispute, one of the countrys largest IPPs Hub Power Company (Hubco) has remained in the limelight of late.
When will the government wake up to save the drowning country is a question that remains unanswered to date. With the countrys worsening position in all aspects- be it the law and order, legal, political, education and health or tourism; the seemingly impossible-to-solve energy issue is busting holes in the economy.
The merciless circular debt continues to grapple with the earnings of the energy sector, particularly the IPPs that have the highest exposure to this inter corporate debt crisis. Hub Power Company has been able to paddle its way through with slightly higher than expected results.
For those who know little about the World Future Energy Summit, WFES is a business platform for the development of renewable energy through a four-day discussion and exhibition held annually in Abu Dhabi. This year is no exception. Summarily, one could derive 7 conclusions from the reunion of 112 countries this year.
Frustrated citizens, protesting on the streets, have finally got some reason to be cooled down. Load shedding that had peaked sharply over the past two weeks has finally eased, although contrary to Pepcos claims even then it has not come to an end.