Alternate power policy within two months

ISLAMABAD: Minister for Power, Omar Ayub Khan on Monday said the government will announce alternate power policy within the next two months as it is determined

to meet the future energy needs of the country.

Talking to media outside the Supreme Court, the minister said, at present the energy and the capacity payment component was 60 percent and 40 percent, respectively, and our institutions have to bear the capacity charges as well.

He said it was because Pakistan was single buyer market and it was the government that purchased power from the power producing companies. The minister explained that for the needs of the industrial units, the government has to ensure availability of power in the system.

Therefore, it has to pay the power producers, the energy as well as the capacity charges. He said the capacity payment included charges like interest cost and fixed overhead that were paid to these companies to keep their machines prepared for generation under the merit order.

The energy payment was made to ensure availability of fuel and lubricants. “With installation of more plants, the component of capacity payment may further increase in the bill,” he added. Khan said the government was taking effective measures to reduce unemployment through growth of the industrial sector. When asked about conducting audit of previous governments’ agreements, theminister said, the agreements were reached under 1994, 2002 and 2007 power policies. “Let the court decide on this matter,” he added.