Islamabad is facing a huge setback in the energy sector. The maximum usage of fuel is still unable to diminish the electricity load shedding from the country. The private sector is continuously looking towards the government for the permission of LNG import, which is necessary to fulfill the demand of energy in private power plants, textile and CNG sector at almost half the price.
On the other hand, the power generation in Karachi has much improved due to the change in the source of re-gasified liquid natural gas (RLNG), which is now taken from Sui Southern Gas Company Ltd (SSGCL) rather than from Sui Northern Gas Company Ltd (SNGPL) and it has turned down the merit order of the National Transmission & Dispatch Company (NTDC).
The demand of LNG is rational and profitable instead of high-speed diesel for power generation according to The Independent Power Producers (IPPs). Whereas, the government is continuously losing its assets on expensive fuel, by giving the order to import furnace oil for the national grid and KE system.
The position of SNGPL is also in difficulty as it is not able to fulfill the need for fuel of Bhikki, Haveli Bahadur Shan, and Balloki, which is about 1320 megawatts each. It claims that SNGPL has to provide 80-150 million cubic feet of gas to Karachi.
Sources report that IPPs have been given intimation to prepare themselves for the usage of High-Speed Diesel (HSD). Although the demand for HSD is also increasing in the transport sector and its use in other sectors will create a chaotic situation in the country because after the increase in its use there will be only 9 days of stock will be left for the transport sector which is an alarming situation for the government. And it was not only about demand but also cost, the cost of HSD and furnace oil is also much higher and increasing the burden on the shoulder of its consumer, a common man. This situation has triggered the protest, some IPPs has written a letter to the Ministry of Energy Omar Ayub Khan and has informed about the discrepancies due to the latest situation. They also informed him that the Central Power Purchasing Agency (CPPA) is continuously enforcing them to get ready the plants on HSD. Whereas, the electricity on diesel is not beneficial for the consumers. The comparison of diesel and RLNG is also provided by IPPs, according to the electricity on diesel cost the government Rs15-20 per kWh (unit) and if it was done on spot RLNG it would come down to Rs7-8 per unit, which is much more different and beneficial for the consumers. Another issue regarding HSD is the immediate payment, there is a significant decline in the recovery of billing amount due to Covid-19 and the increasing rate of HSD would aggravate circular debt status and also disturb the cycle of payment of CPPA and power plants.
