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Monday, June 20, 2011

Circular debt leads to crude oil shortage , power crises can increase by 1500 MW

Islamabad: Almost five power generation including companies including independent power generation companies (IPPs) and rental power projects (RPPs) find difficult to continue their operation in Pakistan due to acute shortage of furnace oil due to which the power crises would be further intensified.

The main factor of shortage of furnace oil is the circular debt in power sector , which has touched the incredible figures of Rs 80.44 billion , which the power generation companies have to owe to Pakistan State Oil (PSO), only public sector company responsible for supplying oil to these power projects.
Those power projects that would be affected by the scarcity of furnace oil included Halmor Power Project, Reshma Power Plant, Guddu Power Project , KES Lalpir Generation Company and Faisalabad Sumandari Power Plant.
The capacity of these power plants is 4500 mega watts while at present they are almost generating 2800 mw. These power plants, which are running already approximately 1700 mw short of their original capacity , could further reduce their generation by almost 1500 mw. The situation could increase the power crises in the country resulting further hours of load shedding.
According to the sources the consumption of furnace oil in power sector is 31000 metric ton per day, whereas at present it is supplied 20,000 to 22000 mtd. The sources of PSO told this scribe that the circular debit raised to that level , due to which it has become very hard to continue furnace oil supply to power generation plants according to their demands as PSO also has to make payment of almost Rs 78 billion to oil exploring companies as well as on account of exports.
According to PEPCO on Sunday the generation of electricity in Pakistan was 12939 mw , whereas the demand was 17898 mw .The shortfall of electricity in the country was 4951 mega watts .The electricity supplied to KESC was 710 mw.
According to break-up, the production of hydal plants was 1588 mw, IPP genarted 5884 mega watts. The generation of RPPs were 83 mw.
Whereas the total generation capacity of IPPs is 7500 mw, similarly the hydal plants can produce 6444 mega watts, the capacity of thermal power plant is 2550 mw and RPPs can produce 284 mw of electricity .
Due to shortage of furnace oil the shortfall of electricity can swell to almost 6500 mw form its current level of 4951 mw, which would increase the power crises and load shedding.
People at different cities of the country are protesting against power outages, which caused huge loss to national property. If the crises would be deepened , it would be cause more problems for the government. Online