Circular debt to power producers hits Rs 807 billion.

• Author: Kazmi, S. Kamal Hayder

Byline: S. Kamal Hayder Kazmi

Over the last one year, the Ministry of Finance of Government of Pakistan showed that there has been no significant change in the consumption pattern of energy, although the share of households in electricity consumption has risen slightly to 51 percent. This has been offset by a 1.0 percent fall in share of industry in electricity consumption. Statistics explained that the comparison between consumption patterns of energy during July-Feb FY2018 with the same period last year.

The experts recorded that Pakistan's circular debt payable to the power producers has topped Rs 807 billion and the Government of Pakistan is introducing initiatives to enhance recovery of dues and outstanding liabilities. The government official said the circular debt payable to Independent Power Producers (IPPs) in December 2018 was Rs 683,484 million, while the amount payable to fuel suppliers by thermal power plants (Gencos) is Rs 124,403 billion. It is said that the Government of Pakistan was striving to slowly control the outstanding amount of circular debt. An anti-theft campaign has also been introduced in the entire country to manage line losses and enhance the recovery position.

According to the government official, the current line losses reached at 18.3 percent, adding that 95 percent of those line losses were occurred due to 'Kunda' culture. Statistics also showed that the losses were mainly high in Sukkur (36.7%), Peshawar (36.2%) and Hyderabad (29.9%) regions. To curb the menace, ABC [aerial bundled conductors] cables were being fitted on which hooking did not work. It is also said that the contracts to generate electricity from alternate sources were made during 2006 but unluckily, about a year and a half ago, the alternate sources of energy were abandoned to shift to LNG (liquefied natural gas).

It was also recorded that the present government had planned to develop more wind and solar power projects by competitive bidding in order to avail advantages of falling prices through market competition. The experts also mentioned that the government of Pakistan wants financiers to participate and purchase energy to offer it to Gilgit-Baltistan and Balochistan, adding that 19,000 tube wells in Balochistan were being converted to solar energy.

Furthermore, the several initiatives had been taken by the government through AEDB (Alternative Energy Development Board) and PPIB (Private Power Infrastructure Board) in respect of foreign...