The Central Power Purchase Agency (CPPA) has submitted a petition with National Electric Power Regulatory Authority (NEPRA) seeking the highest ever increase in power tariff by Rs 3.06/unit (kwh). The reason given by CPPA is that during the month of August 2011 the fuel used by the various thermal power generation plants, diesel oil, furnace oil and natural gas prices were higher than previous month. According to CPPA, 152 Giga Watt hour were produced by power plants using high speed diesel, the cost of production for which was Rs 18.31 per unit. 2991 Giga Watt hour electricity was produced by power plants using furnace oil, the cost of which was Rs 14.84 per unit. Similarly, 21.02 Giga Watt hour electricity produced by thermal plants was at Rs 13 per unit and 415 Giga Watt hours from nuclear power plants was for Rs 12.50 per unit.
As the cost of production of different plants producing electricity per unit is different due to their location and cost of transportation of diesel and furnace oil to these plants is different? Why is the government still operating those plants which are our producing expensive electricity? Why is the government not selling expensive electricity to those who can afford it rather working out average price for every consumer because a certain class of consumers in Pakistan has an income more than Rs 1 million per month. Why the government is supplying them on the same rate when they can afford to pay Rs 30 to Rs 40 per unit. Why they should be given the electricity at the same rate as the one who is having an income of Rs 8000 per month?
The government-owned power generation plants using the diesel and furnace oils have alleged that some politicians and management are stealing the furnace and diesel oil during transportation to the plants Moreover, these plants are only operating at 20 to 30 % efficiency due to being over 30 years old and their cost of maintenance is also very high. The line losses of power transmission are 20 to 30 percent is due to long distance transmission of electricity from power station to grid station and then to consumers. If the power plant and grid station are near to the consumers, these existing losses can be avoided. Also, the theft is also 10 to 20 percent. All these losses are passed on to the helpless consumers who have no other choice than to pay due to the monopoly of government on the energy sector.
Without reforming the energy sector and privatising it, there will be never end to loadshedding and also the demand and supply gap will be not filled. In modern times, it is not the government’s business to run the business. It is the private sector which has taken the responsibility. The central control of production and distribution has been proved to be a disaster. The private sectors have the ability to own and manage the power production and its sales to consumers.
S T HUSSAIN
Lahore
