Over Rs300 billion in circular debt would cripple the energy sector further and lead to a power shortfall of over 5,200 megawatts (MW) next year, National Electric Power Regulatory Authority (Nepra) Chairman Khalid Saeed said on Tuesday.
“Generation companies, distribution companies and Pakistan Electric Power Company (Pepco) have not been able to keep up due to a lack of funds,” he informed the Senate standing committee on cabinet secretariat and provincial coordination.
Our installed capacity is 21,000MW but we are producing only 11,000MW due to lack of resources, he informed the panel.
“If distribution companies do not pay their dues within two months, the situation will get worse,” he said.
Pakistan is among countries that produce a large chunk of their electricity through furnace oil, adding that electricity produced through furnace oil costs at least Rs22 per unit. We have several alternatives for switching to including coal, liquefied natural gas and water. If they use coal to generate electricity then it will cost just Rs. 3/unit.
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