To discuss this extraordinary situation, the Cabinet committee on energy crisis headed by Minister for Water and Power, Raja Pervez Ashraf is meeting on Saturday (today) in the committee room of the Ministry of Water and Power.
The committee comprises Syed Naveed Qamar, Minister for Petroleum, Khurshid Ahmed Shah, Minister for Labour and Manpower, Dr Babar Awan, Minister for Law and Parliamentary Affairs, Qamar-uz-Zaman Kaira, Minister for Information, Shaukat Tarin, Minister for Finance, Mir Hazar Khan Bijarani, Minister for Industries, Hina Rabbani Khar, Minister of State for Economic Affairs, Muhammad Azam Swati, Minister for Science and Technology, Nazar Muhammad Gondal, Minister for Food and Agriculture, Tahir Basharat Cheema, Managing Director Pepco and the Managing Director of KESC.
The committee will deliberate on four agenda items: (i) presentation by MD Pepco of overall power position including reasons for the delays in the induction of IPPs/RPPs and the present situation of generation companies' operations (ii) continued permission to procure RFO supplies from PSO on deferred payment basis in conformity with the decision/facility for July-December 2009 (iii) present slashed cash finance limits of various IPPs which can inhibit power generation and (iv) enhancing the capacity of NPGS Peeran Ghaib, Multan as directed by the Prime Minister Secretariat.
The sources said Hubco's oil stock is sufficient for three days and if Pakistan State Oil does not increase the power generation company's furnace oil supply, the company may be forced to stop power generation. "Our present oil inventory is only for three days and if the state-owned oil supplier does not increase supplies, we may have to stop generation to ensure that our assets are not damaged due to low level of oil stocks," the sources quoted Hubco CEO Javed Mahmood as telling the government.
At present, an outstanding amount of Rs 43 billion is payable to Hubco by Pepco out of which an amount of Rs 36 billion is overdue and payable immediately. The government paid Rs 2 billion to Hubco a couple of days ago. "You are once again requested to clear our dues immediately so that we can settle our obligations to PSO and secure uninterrupted oil procurement and continue to operate and dispatch full capacity to the national grind," sources quoted Mahmood as telling Rana Amjad, GM, WPPO (Wapda Private Power Organisation).
There are reports that Pepco is pressing Hubco to sign another agreement with National Transmission and Dispatch Company (NTDC) but no supporting documents have been provided to the company so far. When contacted, Hubco CEO Javed Mahmood confirmed that his power plant is facing fuel scarcity, which will reduce power generation next week if immediate measures are not taken by the government to rectify the situation.
Kapco's General Manager Engineering, Khalid Pervaiz Bajwa has also written a letter to the GM, WPPO, saying that the power company needs to make advance payments to PSO for ensuring fuel oil deliveries as per its firm orders. The power company is of the view that Pepco should pay outstanding amount to Kapco for onward remittance to PSO for maintaining fuel stocks that would enable it to fulfil its dispatch requirements.
"We regretfully inform you that today we have reached a minimum position of fuel oil stocks and delivery from PSO, a position not matched with the requirement to operate the plant at maximum load factor," said Pervaiz Bajwa in a letter to the Petroleum Minister A couple of days ago the Finance Ministry released Rs 9 billion to PSO to clear the dues of oil refineries and mature Letter of Credits (L/Cs) for oil import.
PSO is to receive dues amounting to Rs 33.605 billion from Wapda, Rs 26.7 billion from Hubco, Rs 14.05 billion from Kapco, Rs 1.82 billion from PIA, Rs 513 million from OGDC, Rs 1.53 billion from Power Holding Co, Rs 1.382 billion audited price differential claims on HSD and Rs 2.09 billion price differential on imported PMG. In return, PSO has to pay Rs 21.56 billion to Parco, Rs 11.4 billion to PRL, Rs 8.9 billion to NRL, Rs 13.5 billion to ARL and Rs 4.65 billion to Bosicor. PSO is bound to clear Rs 11.16 billion dues of KPC and Rs 9.3 billion on L/C payment up to February 8, 2010.