Power generation by private sector

| 24th July, 2012
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 ACCORDING to a recent report, the federal government is considering allowing provinces and private sectors to generate more than 50 MW without its approval.

However, at the same time, it has placed the condition that the distribution of electricity would be the responsibility of national transmission and distribution companies which came under its control and were owned by the federal government.

Whosoever has made this condition in the federal government’s energy policy is not interested in the welfare of the people and does not want the country to overcome the energy crisis.

I think if the provinces and private sectors are allowed to distribute electricity, then line losses, thefts, recovery from government departments, corruption in distribution cases, mismanagement and all other main causes of loadshedding will be solved.

I do not understand why the federal government is unable to comprehend monopoly as being one of the main causes of depriving consumers of their right of choice.

Only healthy competition and a free-market policy encourage foreign investors in the present global economy. Pakistan with a meltdown economy, unable to generate revenue to meet the government’s administrative expense, can have billions of dollars to invest in new energy generation projects.

During the last four years, the federal government has not been able to find money to solve the circular debts problems. How can it be believed that it would be able to invest in power-generation projects?

STH
Lahore

COMMENTS

  1. In my opinion the only viable solution is to first make Karachi and Lahore a role model. The power distribution and collection should be a private entity and power generation a separate entity. As long as the collection remains in control of government nothing can be achieved. The power generation companies should be paid in advance by the collection company so that there is no reason or excuse for non generation.

  2. If the electricity distribution is not controlled by the government, then the rich will get the electricity on demand when, where and how much they want, and the poor will only get the leftovers, and lots of load shedding. No one is going to set up an electricity generation unit, where they can't make a profit, not me at least.

  3. They must generate electricity using gas.We have plenty of gas reserves.

  4. I am wondering if this China's offer of Rs. 300 per family real or just a rumor. Does anybody know for sure?

  5. Exactly. How is it possible to run a country with out money?
    They are doing a study. There are holding a meeting. They can't collect past due electricity bills.
    Yes. We are looking into it.
    What is the point of the government running the electric company if they can't collect the receivables?
    They just want control so all the electricity stays in Islamabad.
    Pakistan can't live on promises.

  6. As the elections are at hand, it’s customary to make false promises in order to gain people’s favor who are easily taken in. If the government were interested in coping with electricity crisis in the country it wouldn’t have missed China’s offer to provide with electricity to the helpless masses costing only Rs. 300 (Three Hundred Rupees) per family.

  7. As the elections are at hand, it’s customary to make false promises in order to gain people’s favor who are easily taken in. If the government were interested in coping with electricity crisis in the country it wouldn’t have missed China’s offer to provide with electricity to the helpless masses costing only Rs. 300 (Three Hundred Rupees) per family.

    • It is all conjecturing. China my friend is our greatest economic enemy. She would never make such low cost offers to us as we are its captive market. She sells things at rates much higher than international market because no one else likes to do business with us. You may be right if we are talking about cheap plastic lighters and toys only.