Nepra asked to facilitate resolution of energy crisis
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The Pakistan Economy Watch (PEW) on Tuesday asked National Electric Power Regulatory Authority (NEPRA) to resolve the tariff issue of power co-generation pending since 2009 to reduce the intensity of energy crisis.
Nepra has not been allowing sugar mills produce electricity through co-generation which is taking toll on the limping economy, it said.
Sugar millers have been trying since five years to get upfront tariff of 11 cents per unit approved so that they can start power production using bagasse and coal, said Dr. Murtaza Mughal, President PEW.
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, former President PSMA.
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.
