08-09-2011, 04:00 AM
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[url="http://www.dailytimes.com.pk/default.asp?page=2011/08/09/story_9-8-2011_pg1_2"]Massive surge in load shedding likely as IPPs face cash crunch[/url].
* IPPs demand payment of Rs 150bn immediately to continue operations
* Warn nonpayment will lead to closures, reducing generation capacity by 4,000MW
ISLAMABAD : The advisory council of the Independent Power Producers (IPPs) on Monday sent an SOS message to the federal government to immediately provide Rs 150 billion or the electricity shortfall will further increase by 4,000 megawatt, sources said.
At present, the total electricity generation in the country is estimated at 14,645 megawatt against a demand of 18,541 megawatt. In case, the IPPs are closed due to shortage of funds, this shortfall would increase from 3,896 megawatt to 7,896 megawatt with unprecedented load shedding in the country, sources in the power sector informed Daily Times.
Due to non-payment of dues, some IPPs have already closed down and country have lost 2,500 megawatt generation capacity and further closure of plants would result in massive increase in load shedding, sources added.
An emergency meeting of the advisory council of the IPPs was held under its chairman M Abdullah Yusuf. All the members unanimously voiced their concern over ever increasing overdue amount payable to them by PEPCO, which has reached Rs 210 billion as on August 8, 2011.
Moreover, Gul Ahmed Energy in the south is also shut for the last three weeks due to nonpayment of almost Rs 3 billion by the Karachi Electric Supply Company (KESC). This is causing defaults with their banks and also restricting the supply of power due to non-availability of fuel. The position has aggravated to the point that they will be forced to shut down their power plants within the next few days.
The members were particularly concerned about the present situation of load shedding which would be aggravated and would unduly create more hardships for the public, particularly during Ramazan.
The council requested the newly formed committee on power issues, headed by the finance minister and represented by the minister for water and power, minister for petroleum and natural resources, deputy chairman of the Planning Commission and the State Bank governor to immediately convene a meeting of all the IPPs to apprise the committee of their desperate situation.
The meeting resolved to asked the committee to immediately inject at least Rs 150 billion to save the IPPs from total closure within the next few days.
Failure to do this will cause immediate shortage of electricity for the consumers, said the council.
The sources in the power sector informed that mismanagement in the public sector is creating difficulties for the IPPs and these units have no option except to close their operations due to non-payment of their dues. In its failure to pay the IPPs on time, the federal government had to pay Rs 26 billion additional interest last fiscal year.
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[url="http://www.dailytimes.com.pk/default.asp?page=2011/08/09/story_9-8-2011_pg1_2"]Massive surge in load shedding likely as IPPs face cash crunch[/url].
* IPPs demand payment of Rs 150bn immediately to continue operations
* Warn nonpayment will lead to closures, reducing generation capacity by 4,000MW
ISLAMABAD : The advisory council of the Independent Power Producers (IPPs) on Monday sent an SOS message to the federal government to immediately provide Rs 150 billion or the electricity shortfall will further increase by 4,000 megawatt, sources said.
At present, the total electricity generation in the country is estimated at 14,645 megawatt against a demand of 18,541 megawatt. In case, the IPPs are closed due to shortage of funds, this shortfall would increase from 3,896 megawatt to 7,896 megawatt with unprecedented load shedding in the country, sources in the power sector informed Daily Times.
Due to non-payment of dues, some IPPs have already closed down and country have lost 2,500 megawatt generation capacity and further closure of plants would result in massive increase in load shedding, sources added.
An emergency meeting of the advisory council of the IPPs was held under its chairman M Abdullah Yusuf. All the members unanimously voiced their concern over ever increasing overdue amount payable to them by PEPCO, which has reached Rs 210 billion as on August 8, 2011.
Moreover, Gul Ahmed Energy in the south is also shut for the last three weeks due to nonpayment of almost Rs 3 billion by the Karachi Electric Supply Company (KESC). This is causing defaults with their banks and also restricting the supply of power due to non-availability of fuel. The position has aggravated to the point that they will be forced to shut down their power plants within the next few days.
The members were particularly concerned about the present situation of load shedding which would be aggravated and would unduly create more hardships for the public, particularly during Ramazan.
The council requested the newly formed committee on power issues, headed by the finance minister and represented by the minister for water and power, minister for petroleum and natural resources, deputy chairman of the Planning Commission and the State Bank governor to immediately convene a meeting of all the IPPs to apprise the committee of their desperate situation.
The meeting resolved to asked the committee to immediately inject at least Rs 150 billion to save the IPPs from total closure within the next few days.
Failure to do this will cause immediate shortage of electricity for the consumers, said the council.
The sources in the power sector informed that mismanagement in the public sector is creating difficulties for the IPPs and these units have no option except to close their operations due to non-payment of their dues. In its failure to pay the IPPs on time, the federal government had to pay Rs 26 billion additional interest last fiscal year.
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