PSO is violating an agreement for providing furnace oil although a payment of Rs40 billion has been made: Pepco.—File photo

LAHORE: The Pakistan Electric Power Company (Pepco) has put the blame for massive loadshedding on Pakistan State Oil (PSO), saying it is violating an agreement for providing furnace oil although a payment of Rs40 billion has been made and Prime Minsiter Yousuf Raza Gilani has issued clear instructions.

Talking to Dawn, a Pepco spokesman claimed that a meeting was held at the Finance Ministry in the last week of December to thrash out the matter. The PSO refused to oblige and the Ministry of Water and Power sought the prime minister’s intervention.

After the intervention by the chief executive, the PSO agreed to provide 23,000 tons of oil against Pepco’s demand of 27,000 tons a day.

The PSO, however, has not fulfilled its commitment to date and has provided a maximum of 15,000 tons per day. On Jan 13 (Thursday), it provided only 11,000 tons of furnace oil, the spokesman said.

About the outstanding dues of PSO, the spokesman said that Rs40 billion was paid to it on Jan 6.

It was done on an explicit understanding that the PSO would ensure supply of furnace oil to thermal power plants.

The spokesman regretted that the PSO had not been able to meet its commitment made at the highest level.

The same commitment was reflected in a press conference addressed by Pepco Managing Director Rasul Khan Mahsud on Dec 24 who informed the media that arrangements for the supply of furnace oil had been firmed up to ensure maximum power generation during closure of canals.

The spokesman said that because of the reduction in supply, two biggest plants – Kot Addu Power Company (Kapco) and Muzaffarghar – had seen their generation plummeting to half.

Besides, the spokesman said, Jamshoro Power Station, Lakhra Power plant, Jagran and Malakand were closed because of the damage caused to these plants by recent floods and weather-related problems led to closure of Liberty Power plant, Engro Power plant and Guddu power plant.

But still, he claimed, the media reports of a shortfall of over 4500MW were speculative.

Computation of shortfall of electricity, he claimed, was a ‘complex exercise’ and could not be made on the basis of hours of loadshedding in various parts of the country, since power consumption was not uniform and depended on the consumer mix of an area.

The correct demand, the spokesman said, could only be assessed if there was a surplus generation which unfortunately was not the case, at present. The shortfall tabulated by Pepco and released to press was based on historical data, he said.

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