News
Friday, August 12, 2011
Two sub-committees formed to resolve energy issues* Committee on Energy reviews targets of revenue, cost of power purchase for 2012
ISLAMABAD: The Committee on Energy on Thursday formed two sub-committees to develop proposals for the resolution of energy issues, including power generation.
It will also develop proposals to deal with issues, especially Independent Power Producers (IPPs), circular debt, outstanding payments and a sustainable way forward to devise a permanent solution to liquidity issues of the sector.
The third meeting of Committee on Energy formed by the prime minister was held under the chairmanship of Finance Minister Dr Abdul Hafeez Sheikh.
The IPPs’ representatives presented their points of view on the issues affecting the smooth functioning of the power sector.
It may be mentioned here that the Committee on Energy has reviewed the targets of estimated revenue and cost of power purchase for financial year 2012.
The budgeted amounts of subsidies for financial year 2012 that have been developed after thorough analysis by the Ministry of Water and Power aided by PEPCO and allied finance wings of distribution companies and in consultation between the Ministry of Water and Power and Ministry of Finance have been reviewed by the committee.
Due to the dynamic nature of these numbers and because of various input costs, like oil and gas prices, adjustments continue throughout the year to meet the targets set at the beginning of the year.
The committee has deliberated on mitigating measures, which are being pursued.
The liquidity crunch in the system is a varying figure as it is affected by market prices of fuel, generation mix, sale price of electricity, line losses and collections.
The committee is focusing on the effects of these established figures on the dynamics of the power sector. The difference between payables and receivables is being continuously monitored and needs to be reduced to a sustainable level.
Any weaknesses in the system and their overall effect are being analysed by all stakeholders including PEPCO, NEPRA, IPPs and DISCOs on a continuous basis.
NEPRA as the regulator of the sector under a well developed and proven mechanism, it manages, regulates and monitors the entire sector to ensure sustainability and rights of the consumers.
It takes into account all key issues of power sector, through an elaborate mechanism of tariff petition and public hearings. NEPRA while onboard in the entire discussion will also give a detailed presentation of the entire mechanism.
The minister of Water and Power, the minister of Petroleum and Natural Resources and the Planning Commission deputy chairman also attended the meeting. app
Courtesy www.dailytimes.com.pk