ECC most likely to permit the extra supply of 150MW to KE

ISLAMABAD: The govt is expected to allow on Wednesday a plan for procurement of about 6.9 million tonnes of wheat in the open public industry through 2019-20 and permit the sale of additional 150MW less costly electrical power from the country grid to K-Electric without settlement of old liabilities. A conference of the Economic Coordination Committee ( ECC ) of the Cabinet has been called on Wednesday to also formally permit Rs3 per unit subsidy declared by the prime minister for the commercial industry. Finance and Revenue Adviser Dr. Abdul Hafeez Shaikh will preside over the conference.

An official declared the KE was faced with substantial ( 500-600MW ) shortfall in peak summer season and had been pursuing the state organizations for extra supply from the national grid adding in from Karachi-based nuclear electric power to meet peak need and reduce open public sufferings. It has been attempting to safe about 500MW from the national grid in view of its inability to overcome capacity constraints on its own. The Energy Sector has presently shifted a summary to the ECC in view of sufficient surplus capability in the national network.

After a variety of conferences with Central Power Purchasing Agency ( CPPA ), KE, National Transmission and Despatch Company ( NTDC ) and National Power Control Centre ( NPCC ), the Power Division has recorded technological possibilities of 150MW additional power to KE from 3 wind power plants. It was recorded that 132kV existing transmission line could evacuate 150MW from 3 wind power plants in Gharo spot namely Dawood Hydro China, Zephyr and Tenaga ( 50MW each ) to KE.

A fresh power purchase agreement ( PPA ) for 2 yrs would be authorized by KE with CPPA/NTDC after proper approval from the ECC of the cabinet. The PPA would be extendable. The average basket cost of NTDC would apply to the sale of an extra supply of power to KE. The govt has not yet granted national security certificate for the transfer of KE’s 66pc discuss to Shanghai Electric of China because of over Rs100bn claims of Sui Southern Gas Company and NTDC/CPPA against the KE while the Karachi-based private utility also had claims against a variety of entities of Sindh government. As a result, Shanghai’s $1.77 billion takeover plan of the KE continued to face roadblocks.

Informed sources declared the ECC would also formally allow Rs3 for each unit subsidy in power tariff to industrial customers permitted by former prime minister Nawaz Sharif. They declared the industrialized customers had been enjoying the lower costs but the Finance Division had been reluctant to disburse these funds to energy organizations because initial allocations lapsed almost a year ago. The Power Division has now moved a synopsis for allocation of funds in the budget with the consent of the finance sector.

The sources declared the govt would also allow wheat procurement plan for present crops to facilitate farmers now in harvesting phase. An official declared the whole procurement of 6.9 million tonnes would cost about Rs250bn. Of this, the federal government would supply about Rs40bn to Pakistan Agricultural Services and Storage Corporation ( Passco ) for procurement of 1.1m federal share of the procurement plan. The remaining 5.8m tonnes would be procured by the provincial governments from their own resources. The ECC is also expected to allow an Rs1.8bn additional subsidy to Tribal Electric Supply Company ( Tesco ) as the price of uninterrupted supply to domestic consumers and overall load administration plan for the people of tribal districts of Khyber Pakhtunkhwa during Ramazan.

In addition, the ECC would allow about 10 supplementary allows mostly to law enforcement companies and anti-narcotics force. These include about Rs75m worth of 4 technical supplementary gives for anti-narcotics force ( ANF ). Another main supplementary grant would be placed before the ECC by the Cabinet Division to meet the shortfall in pays, allowances, and remunerations of the federal ministers, advisers, and specific assistants and so on for 2018-19. One more supplementary give for payment of court charge would be permitted in case of Dr. Hilal Hussain Al-Tuwairai and Al-Ittefaq Steel Products Company Ltd versus the Islamic Republic of Pakistan.

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