said.
With energy prices declining the world over, the power tariff needs to be adjusted accordingly. Since, Pakistan is one of the few countries producing substantial portion of power from Furnace oil, its power tariff has always been higher then rest of the competing economies.
Another power sector expert Mian Fazal said since 37 percent of the power in Pakistan is produced through engines running on furnace oil; the power cost in Pakistan remained high for more than two decades. Furnace oil, he added, during that period was costlier than hydro electric, gas or coal fired power generation. The situation has dramatically changed now, as the cost of fuel of all independent power producers stands at Rs 8 per unit, which is equivalent to the cost of coal fired power generation and lower than LNG.
Furnace oil rates have dropped from Rs 85,000 per ton to Rs 45,000 per ton, he said. After accounting for maintenance charges and the profits of IPPs the government buys power from IPPs at Rs11 per unit. The IPPs on average supply 5000 MW to the National Transmission and Distribution Company, he said.
Pakistan produces around 2000 MW, which is produced from gas that costs the government Rs 8 per units after accounting for all expenses. He said 6700 MW being currently generated through hydro power costs Rs 2.76 per unit. He said 600 MW nuclear power is purchased at Rs7 per unit.
He said around 400 MW power comes from Wind and Solar energy at Rs13 per unit and 1000-1500 MW is supplied by the public sector power companies at Rs 16 per unit. The average cost is than brought to around Rs 7, he said.
Chairman APTMA S M Tanveer said the gas infrastructure development cess would further inflate the energy bill of all industries. He said exporting industries are paying many non-refundable local and federal taxes against global norms as exports are zero rated.
He said numerous spinners have not restarted production even after five days of Eid holidays. This is abnormal as spinners operate 24/7 and do not close on even Eid holidays. He said around 100 spinning mills are under immense pressure and many have defaulted on their loans, utility bills, bank loans and even on salaries of their workers.