The total energy sector circular debt has reached Rs 1,362 billion including Rs 755 billion of Power Holding Company Limited (PHCL) and Rs 607 billion of Standby Term Finance Facility (STFF) loans.
This was stated by Secretary Power Division, Irfan Ali, while briefing the Public Accounts Committee (PAC) which met here under the chairmanship of Mian Shehbaz Sharif. The secretary while giving the details of the circular debt said that increase in circular debt is due to power theft, line losses, outdated power transmission lines and non-recovery of power bills both within the public sector entities and private consumers.
Giving the details of the sector-wise demand-based payables of circular debt as on 30.11-2018, he said Rs 36.2 billion are payable to Gencos (based on gas/RLNG/O&M), Rs 83.5 billion to oil based Gencos, Rs 450.5 billion to IPPs (CPP+EPP), Rs 28.6 billion to nuclear and Rs 156.7 billion to NTDC/WAPDA.
Sharif said that the Gencos are a mafia with having around 25% efficiency and producing per unit of electricity at Rs 28, adding that Gencos must not be used for power production.
On a question regarding the tariff of LNG-based power plants, he said that Nepra in 2015 approved 10.5 cents per unit tariff for the LNG based powers plants but when the plants started power production, due to better efficiency and latest technology used in the plants, the power tariff was 6.5 cents per unit.
He said that with the assistance of Asian Development Bank, the government is to launch AMI meters project in Lahore Electricity Supply Company and Islamabad Electricity Supply Company premises at a cost $40 million. He said that in the first phase the AMI meters will be installed in the areas with high power theft cases and in the second phase the project will be launched in Peshawar Electricity Supply Company, Multan Electricity Supply Company, Hyderabad Electricity Supply Company and other areas with high power theft cases. He said that the second phase of the AMI metering will cost $500 million.
Replying to a question of Noor Alam Khan and Syed Naveed Qamar, the secretary stated that Power Division has started a drive to apprehend those elements involved in power theft both within the distribution companies and consumers. He added that an indiscriminate operation is being carried out against the power thieves and so far 15,746 FIRs against 21,475 power "thieves" have been requested to the relevant police stations while 11,356 FIRs have been registered against the power thieves.
Answering another question of the committee members, the secretary Power Division dispelled the notion that coal-based Sahiwal power plant is creating environmental pollution. He said that Sahiwal coal fired plant, Dawood Wind Farm, Quaid-e-Azam Solar, UEP Wind Farm, Sachal Wind Farm, Port Qasim power plant and Three Gorges second and third wind farms had been completed under the CPEC.
The secretary said that Suki Kinari HPP, Korot HPP, Engro Thar Block-II coal fired power plant, TEL Mine Mouth Thar Block-II coal fired power plant and CPHGC coal fired power plant having capacity to generate about 3900 MW are under construction. He further said that about eight more power projects including SSRL Coal, Thal Nova Power, Kohala HPP, Cacho Wind, Western Energy Wind, coal-fired plant at Gwadar and Oracle Power having 5094 MW generation capacity are in various stages of completion.
He said that new renewable energy policy would be in operation by March 2019 after due consultation with the provinces and approval by the Council of Common Interests (CCI). He said up-gradation of the national grid as well as introduction of regional grids would be important element of the new energy policy.
He further said that by 2025 Pakistan has planned to take the share of renewable energy in the total energy mix to 25 percent and by 2030 it will become 30 percent of the total power production. At present total installed power capacity is 33,836 megawatts (MW), while de-rated capacity is 31,006 MW.
Total hydel power production is 9,730 MW, total Gencos 5,682 of which 4,177 MW is de-rated production, IPPS thermal total capacity is 15,186 MW and de-rated capacity of thermal plants is 13,973 MW, nuclear installed capacity is 1,345 MW and de-rated capacity is 1,246 MW, solar capacity is 400MW, Wind 1,185 MW and Bagasse installed capacity is 306 MW while de-rated bagasse capacity is 295 MW. Hydel is 27 percent of the total installed capacity, LNG, 26 percent, natural gas, 12 percent, furnace oil, 16 percent, coal, 9 percent, renewable, 5 percent, and nuclear is 5 percent of the total installed capacity.
The panel was informed that under China-Pakistan Economic Corridor (CPEC) with an investment of $25 billion in energy sector, a total 12,334 MW power production plants will be completed. The CPEC has 18 priority projects with a capacity of 11,110 MW at an investment of $ 21.7 billion and 3 actively promoted power projects with a capacity of 1,224 MW and total investment of $ 3.3. Under the CPEC, 13 power projects are under construction and in-operation with an investment of $ 14 billion and power producing capacity of 7,240 MW.
On the issue of selling of k-Electric shares to Shanghai Power Company, the secretary said the process was initiated in 2016 between Abraj Group which owns 66 percent of K-Electric shares and Shanghai Power Company but documents were not shared with Privatization Commission of Pakistan which will issue NOC on behalf of government of Pakistan. The secretary said that Chinese company was a reputed firm and the government of Pakistan wanted to have a deal but as yet nothing has been finalized. Recently the Abraj Group has shared the documents with Privatization Commission.
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