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Energy Crisis in Pakistan
The growing menace of electricity and gas load shedding, combined with constantly rising electricity and gas tariffs has mushroomed into a grave national crisis. It has not only been affecting the trade and industry development and construction, education and administration gravely, but also seriously impeded the progress of the whole national life. In spite of higher authorities claims of narrowing the gap between energy demand and supply, the ground situation is showing a discouraging picture. The power short fall has crossed the 5000 figures. Unless immediate remedial masseurs are lunched on footing, Pakistan would lead to even deeper crisis.
A. Causes of Energy Short Fall:
Few of the basic causes of energy shortfall are under
1. Failure of the last regime to increase electricity: The basic cause of energy short in Pakistan is the failure of the last military regime to increase the supply of electricity to keep pace with the growing demands. While the installed capacity had increased by 53% from 1994-99 from 11,320 MW to 17,400 MW; it increases only by 12% between 1999 to 2008, to 19,420 MW.
2. Under utilization of the existing generating capacity: Secondly, an equally serious cause is the under utilization of the existing generating capacity. The availability of hydel electricity goes down in winter by 60%, but unfortunately, the actual generation of electricity from thermal power plants has also declined sharply, thus rising demand and supply gap to around 5000 MW.
3. Circular debts: One of the main reasons in the serious short fall of thermal electricity is the problem of” circular debits”. In 2007, the government did not compensate the power companies for the subsidy that was being provided to the customers. The power companies in turn could not pay the oil and gas companies, reducing their liquidity to import the furnace oil that was needed to generate electricity.
This problem has not only continued, but presently it has turned grave crisis. Presently, the power companies in debt of about 100 billion rupees to the oil and gas companies. Therefore, oil and gas companies provide insufficient oil and gas to the power companies that has resulted in energy short fall.
4. The repeated cutting down its public sector...
A. Causes of Energy Short Fall:
Few of the basic causes of energy shortfall are under
1. Failure of the last regime to increase electricity: The basic cause of energy short in Pakistan is the failure of the last military regime to increase the supply of electricity to keep pace with the growing demands. While the installed capacity had increased by 53% from 1994-99 from 11,320 MW to 17,400 MW; it increases only by 12% between 1999 to 2008, to 19,420 MW.
2. Under utilization of the existing generating capacity: Secondly, an equally serious cause is the under utilization of the existing generating capacity. The availability of hydel electricity goes down in winter by 60%, but unfortunately, the actual generation of electricity from thermal power plants has also declined sharply, thus rising demand and supply gap to around 5000 MW.
3. Circular debts: One of the main reasons in the serious short fall of thermal electricity is the problem of” circular debits”. In 2007, the government did not compensate the power companies for the subsidy that was being provided to the customers. The power companies in turn could not pay the oil and gas companies, reducing their liquidity to import the furnace oil that was needed to generate electricity.
This problem has not only continued, but presently it has turned grave crisis. Presently, the power companies in debt of about 100 billion rupees to the oil and gas companies. Therefore, oil and gas companies provide insufficient oil and gas to the power companies that has resulted in energy short fall.
4. The repeated cutting down its public sector...
