Bureaucracy impeding resolution of energy crisis
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The Pakistan Economy Watch (PEW) on Monday said the National Electric Power Regulatory Authority (NEPRA) is not allowing sugar mills produce 2000 mw of electricity through co-generation since five years.
An urgent decision is needed as delay on the part of regulators of electricity in the energy starved notion is taking toll on the limping economy, it said.
Sugar millers have been trying since 2009 to get upfront tariff of 11 cents per unit approved so that they can start producing electricity by using bagasse and coal, said Dr. Murtaza Mughal, President PEW.
He said this while talking to a group of industrialists led by Iskandar Muhammad Khan, former president Pakistan Sugar Mills Association (PSMA).
Dr. Murtaza Mughal said that in 2009 the government approved 19 cents tariff for rental power plants and 14 cents tariff for IPPs but refused to allow sugar millers tariff of 11 cents despite the fact that co-generation would have no impact on forex reserves as no imports were involved.
Removing bureaucratic hurdles would pave way for the resolution of energy crisis as sugar industry has great potential for power generation which will reduce unemployment and trigger new investments, he observed.
Using bagasse only for power generation is not attractive as it is available only during sugar harvest season therefore millers should be allowed to operate the power plants on coal when bagasse is not available, said Iskandar Muhammad Khan.
Disallowing co-generation will deter investors as the generation capacity of power plants will remain unutilised during for almost six months, he added.
Nepra should take a decision in the national interest that must make business sense, observed Khan, adding that we are ready to accept tariff of 10 cents per unit.
NEPRA has determined bagasse-only generation tariff but it is yet to announce the price for co-generation from bagasse and coal which is not only unfortunate but delaying the sugar industry’s massive investment plans which is frustrating.
