Five-day working week, markets’ closure at 8pm announced

Govt promises 33% cut in load shedding

* PM says progress in implementation of announced measures will be reviewed fortnightly
* Obama administration has assured Pakistani govt of assistance

By Irfan Ghauri

ISLAMABAD: The government on Thursday unveiled a new strategy to deal with the power crisis in the country, announcing measures to save 500 megawatts of electricity daily, the settlement of circular debt amounting to Rs 116 billion, five-day working weeks and the closure of businesses at 8pm.

Addressing a press conference after the conclusion of the three-day ‘National Energy Crisis Summit’, Prime Minister Yousaf Raza Gilani said the latest measures would not only help conserve 500 megawatts of power, but would help overcome unscheduled load shedding and reduce scheduled power outages by 33 percent. He also announced the establishment of a ‘Public Sector Energy Development Fund’ with an initial allocation of Rs 20 billion.

Around 500 megawatts are expected to be saved through various steps to be taken immediately, including the closure of commercial centres at 8pm, two weekly holidays, a 50 percent reduction in lights at government buildings – including the Presidency, Prime Minister’s House, governors’ houses and chief ministers’ houses.

The prime minister said that under short-term measures, 300 megawatts would be added to the system through 10 independent power projects, while another 1,300 megawatts would be added to the system by the end of year. He said another 605 megawatts would be added through rental power plants (RPPs).

The government would settle circular debt amounting to Rs 116 billion to resolve the financial problems of the power sector, and ensure that the debts do not accumulate again.

Under long-term measures, 21,000 megawatts of hydel energy, 30,000 megawatts of coal energy and 15,000 megawatts through other means would be generated to meet the country’s future energy requirements.

Gilani said progress in the implementation of the announced measures would be reviewed fortnightly.

Elaborating the short-term measures, Water and Power Minister Pervaiz Ashraf said 70 megawatts of electricity would be saved by halving the number of lights at government buildings and other public offices. He said air conditioners would be allowed only to officials in or above Grade 20 after 11am.

The minister said that 314 megawatts of electricity would be saved by halving the use of street lights; 70 megawatts by cutting off power to billboards, neon signs and commercial decoration lights; and 150 megawatts through staggered weekly holidays for industrial units. He said 250 megawatts of power would be saved through agricultural tube wells, which would not be provided electricity at peak hours. He said “a lot of electricity” would be saved through the closure of commercial markets at 8pm, while wedding halls would be allowed three-hour functions, and “the timings would be decided by the provincial governments”. He said all government offices would have two weekly holidays. The measures would remain in place until July 30 ... they will be reviewed according to the situation at that time.”

About power generation plans, the minister said the availability of gas was essential for power generation. He said 183 MMCF of gas were, therefore, being provided to the power sector to add 740 megawatts to the system: 240 megawatts through Guddu, 200 megawatts through PEPCO and 300 megawatts through other generation companies. He was optimistic that by the end of the year, around 1,305 megawatts of additional electricity would be made available through rental power projects and independent power producers. He said 300-650 megawatts of power being provided to the Karachi Electricity Supply Company (KESC) would be diverted to other areas.

US aware: Gilani said there was an understanding and realisation in the US over the seriousness of the electricity shortage in Pakistan, and he had been assured by the US administration of cooperation in this context. He said the government was “sincere and fully aware” of the sufferings of the masses and was taking practical measures to address the problems confronting the country. He said the government was focussing on providing energy to the industrial and agriculture sectors in a bid to ensure that the country’s economy was not affected.

The chief ministers of the four provinces who deliberated over the last three days at the energy summit also attended the conference.

Source: http://www.dailytimes.com.pk/default.asp?page=2010\04\23\story_23-4-2010_pg1_1