A significant erosion in gas supply to power sector has landed the power generation companies and consumers into serious trouble, leading to frequent hike in tariff and prolonged loadshedding. According to recent annual report of the Sui Southern Gas Company (SSGC), the gas supply from SSGC to power sector has dropped by 7 per cent as it plunged from 29 per cent to 22 per cent in the last one year.
At national level, the power sector’s gas allocation has witnessed a sharp decline of 15 per cent, to 27 per cent from 42 per cent in last five years. Energy sector analysts believe that this myopic approach towards the power sector has been a major factor behind the present power crisis in the country that has aggravated power shortage. It is surprising to note that this continuous decline in supply to the power sector has not been of any concern to the policy makers in the government.
Recently, there have been talks about massive supply to captive power plants that are being operated by a handful of influential business and industry players, in violation of the gas allocation policy 2005. A critical analysis of the policy and then a look at the ground realities, forces one to believe that a gross violation of the policy is being committed and nobody is bothered to even question this biased policy.
According to clause 3.1.6 of the said policy, “gas supply to all consumers in Captive Power Sector will be made only after meeting the requirement of domestic, fertiliser, commercial, industrial, and power (both WAPDA/KESC and IPPs) sectors”. Now the question is that did the government owned gas companies meet the requirements of the power sector? Why are the gas companies supplying massive volume of gas to captive power plants by ignoring the power generation companies that are supplying electricity to the consumers? Insiders say that about 100 captive power pants are getting about 250MMCFD of gas from SSGC in Karachi to run their industries in violation of government’s policy.
According to sources, the Karachi Electric Supply Company is getting just 180MMCFD, whereas 100 industrialists are getting 250MMCFD. Same is the case in other areas and the common man continues to suffer due to power outages and tariff hike while a small resourceful minority is enjoying the benefits of a national resource for its own commercial gains. The common man has the right to benefit from the shared national resources and that aspect is being neglected due to the irresponsible and indifferent attitude of a few decision makers who control gas supply. Insiders are of the opinion that a lot of hue and cry is being raised against power outages and circular debt, but no one is taking into account the perils of decline in gas provision to power sector. Sources said the government should intervene and order a probe to find out violation of the gas allocation policy. Power sector’s gas needs must be met on priority basis along with other sectors as envisaged in the policy. Till that happens, not a single molecule of gas should be supplied for self generation. Wrong decisions of the past must be reversed without any further delay. Significant reduction in load shedding and electricity tariff should be the top priority of the democratically elected government and sufficient supply of gas to the power sector would achieve these objectives to a great extent.
7pc decline in gas supply delivers blow to power sector
