ISLAMABAD: Power Division is said to have directed Independent Power Producers (IPPs) to maintain furnace oil stocks as per their Power Purchase Agreements (PPAs) to avoid inventory issue with the refineries.
Power Division, sources said, will be writing letters to the IPPs on the basis of a letter received from the Petroleum Division.
Power Division in its letter on June 29, 2020 intimated to the Petroleum Division that the Cabinet Committee on Energy (CCoE) on June 18, 2020 took the following decisions: (i) PSO may be allowed to import two firm cargoes and one optional cargo of High Sulphur Furnace Oil (HSFO) with deficit quantity of up to 65,000 MT on C&F basis through a gallop tender; and (ii) private Independent Power Producers (IPPs) may be allowed to import RFO through PSO or other OMC/OMCs after getting a No-Objection Certificate (NOC) from the Power Division, which will consult with Petroleum Division to ensure all local RFO is consumed first keeping in view the demand and supply situation.
Accordingly, in compliance with CCoE's decision, Be Energy, Attock Petroleum, Hascol Petroleum, Oilco Petroleum and Fossil Energy proceeded further.
However, Petroleum Division is of the view that Power Division may issue NOCs only to the respective IPPs for arranging HSFO import through OMC of choice so that uninterrupted supplies of furnace oil are assured to IPPs/ general trade sector.
Further, Power Division may also direct power plants/IPPs to maintain their stocks of furnace as per their PPAs so that inventory issues with refineries are avoided and their sustainable operations are ensured.
Meanwhile, the newly appointed Secretary Power Division, Omar Rasul, is facing a gigantic task in the power sector, as after the removal of Secretary Power, Irfan Ali, two key officials dealing with power sector issues - Zafar Abbas, Joint Secretary/ex-MD NTDC and Technical Advisor to the Ministry, Zargham Eshaq Khan - also relinquished charge on Wednesday.
The sources said, presently, Power Division is working without any official who understands the power sector. The existing officials of Power Division are said to be fighting with each other in a race to get maximum powers in Discos' affairs.
The sources said the newly appointed Secretary Power has to appoint his own team to deal with gigantic issues in the power sector including circular debt.
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