Volume 13, Issue: 2, December 2018 APRIL 2017 INDEPENDENT POWER PRODUCERS ASSOCIATION MONTHLY NEWSLETTER Welcome to the twenty-first edition of Independent Power Producers Association (IPPA) Newsletter. The newsletter is published on a monthly basis to ensure regular dissemination of information to Member IPPs and other stakeholders, and also to provide a platform to discuss issues pertinent to the energy sector of Pakistan. We would like you to send us your feedback and comments on how to improve the monthly newsletter. Monthly Infographics Outstanding Dues as of 15th November, 2018 in PKR Millions Outstanding Dues Comparison (15th Oct-15th November) Grand Total Others Overdue CPP Overdue EPP Overdue - 50,000 100,000 150,000 200,000 250,000 300,000 EPP Overdue CPP Overdue Others Overdue Grand Total November 128,280 73,503 69,223 271,007 October 129,358 65,785 67,349 262,491 Source: Member and Subsidiary IPPs Monthly Infographics Billing and Payments in November 2018 in PKR Millions Billing & Payments 30,000 26,015 25,000 20,000 17,141 15,470 15,000 9,162 10,000 6,860 5,131 5,000 1,176 2,015 - EPP CPP Others Total Billing Payments Source: Member and Subsidiary IPPs Net Generation and Plant Utilization in November 2018 Source: Member and Subsidiary IPPs Local News Minister warns of Indiscriminate NPPMCL’s RLNG-based Power action against Power Pilferers Projects Islamabad: Federal Minister for Energy, Karachi The Economic Coordination Omar Ayub Khan warned in unequivocal Committee (ECC) of the Cabinet has terms that those who are involved in power approved issuance of government guarantee theft would be dealt indiscriminately as the to National Power Parks Management debt incurred by electricity pilferage has Company Ltd (NPPMCL) for raising Rs 38 overburdened national economy. Addressing billion funds from financial institutions to a press briefing here at Chief Minister’s meet the financing needs for two RLNG- House on Saturday, he said that there would based power plants - Balloki and Haveli be a zero tolerance policy for power Bahadur Shah. A proposal put up to the pilferers and those who have getting direct ECC Finance Division contended that connections through ‘Kumda’s would be NPPMCL owned by federal government dealt with an iron hands and was established with the mandate to operate indiscriminately. The federal minister said two re-gasified liquefied natural gas that circular debt under electricity losses (RLNG) based power generation plants at have been reached to an alarming figure of Balloki, district Kasur, and Haveli Bahadur 1300 billion that is a matter of grave concern Shah, district Jhang, with capacity of 1223 owing to its perils on country’s MW and 1230 MW respectively. The economy. He informed that monthly losses projects had been approved by the Executive of Pesco have been reached to Rs 4 billion Committee of the National Economic adding among the losses 3.7 billion rupees Council (ECNEC) in February 2016 at the were from Bannu region and certain areas of total cost of Rs 190.44 billion. Of the total Mardan and Peshawar valley. He said that cost, Rs 114 billion was provided by the consumers that are regularly paying their federal government as cash development electricity bills are affected by forced load loan (CDL) to the NPPMCL at the standard shedding due to line losses and electricity terms during the fiscal years 2015-16 and theft. He said that we have been directed by 2016-17. The amount of cash development Prime Minister, Imran Khan to devise a loan of Rs 114 billion disbursed to comprehensive plan and a result-oriented NPPMCL was acquired as advance against strategy to resolve the issue aiming equity injection by the PDFL and to partially facilitation of regular bill payers and the fulfill the funding requirements of poor. Federal Minister informed the media NPPMCL, short-term loan of Rs 32.738 that people would get relief by curbing billion was also provided by the PDFL. Now Kunda culture while duration of forced load the NPPMCL has requested Finance and shedding would be gradually decreased in Power Divisions to arrange project financing areas that would show increased revenue requirements of Rs 70 billion to pay off the generation and decrease line losses. remaining cost of projects and short-term loan of PDFL. The ECC was also told that Source: Business Recorder the financing requirements of the NPPMCL wants,” he added. Additional Secretary were examined and it was decided, in Ministry of Industries and Production, consultation with relevant stakeholders, that Abdul Jabbar Shaheen that in order to the principal amount of Rs 32.738 billion formulate a plan for operationalization of the provided by PDFL to NPPMCL as short- PSM, MoI&P official intend to have term loan would be converted into PDFL detailed sessions with PSM management in equity into NPPMCL. the coming week, therefore, PSM management is required to start working on Source: Business Recorder war footings in this regard. Source: Business Recorder Hubco CE Preparing Different Models Ajk Consumers to Be Charged At Islamabad: A private sector group headed by Par with Other DISCOS’s Chief Executive Hub Power Company (Hubco) Khalid Mansoor, is reportedly Islamabad: The federal government has preparing different models for rehabilitation decided to charge AJ&K domestic of Pakistan Steel Mills (PSM), to be shared consumers using 1-100 units at par with with the federal government. Finance those of other power Distribution Minister, Asad Umar, who is also the Companies (Discos) whereas bulk power Chairman of Cabinet Committee on supply will be made from CPPA-G as is Privatization (CCoP), had assigned this being done in case of K-Electric as per tariff responsibility to Prime Minister’s Advisor determination by Nepra. Electricity on Commerce, Textile, Industries and Department of AJK receives the power in Production and Investment, Abdul Razzak bulk and sells the electricity to its consumer Dawood. According to sources, a couple of in AJK at the distribution tariff rates Russian and Chinese companies have shown determined by Nepra and notified by GoP. interest in acquiring stakes in the PSM. The Funding required to purchase electricity is representatives of these companies intend to provided to Government of AJK by physically visit the mills which is Government of Pakistan through its dysfunctional for the last more than two budget. Government of AJK had been years but salaries are being paid to disputing the rates being charged by the employees. The incumbent government has Discos . The matter was repeatedly taken up also paid billions to the employees without at the highest levels and, finally, in the year ant duty. When contacted Khalid Mansoor 2003 in the contract agreement of Mangla said, his team is comprised of technical Dam Raising Project. Ministry of KANA & people who worked in Engro and Engro SAFRON constituted a sub-committee to Polymer for due diligence, refurbishment firm up and submit its recommendations and relocation, in addition to experts who regarding rate of new electricity tariff for have already worked in PSM etc. “We will AJK beyond September 30, 2003; submit our unbiased assessment to subsequently, in last meeting of the sub- government and then it will be up to the committee chaired by federal Secretary government to opt whatever option it Water and Power, it was decided that the tariff for AJK should be fixed at second and third working sessions, Rs.5.79/kWh, which is the tariff for 1-100 respectively. Lt. Gen Muzammil Hussain unit slab of domestic category, as majority (retd) and former governor State Bank Dr of electricity consumption in AJK falls in Shamshad Akhtar who also served as that slab of electricity tariff. This tariff will caretaker federal minister enlightened the remain applicable from July 1, 2015 till next participants on various challenges and tariff determination of 2015-16. opportunities in the energy sector of Pakistan. Source: Business Recorder Source: Business Recorder CJCSC underscores Self-Reliance for Energy Security 300MW Coal-Fired Power Plant Islamabad: Chairman Joint Chiefs of Staff Board of Private Power & Infrastructure Committee (CJCSC) General Zubair Board (PPIB) on Tuesday granted extension Mahmood Hayat on Monday said that in Letter of Support (LoS) of +660kV affordable and sustainable energy supply is HVDC Matiari-Lahore Transmission Line crucial to steer the country out of economic Project and Letter of Intent (LoI) of 300MW crises. “Self-sufficiency and self-reliance is coal-fired power plant at Gawadar. Minister needed to ensure energy security,” he for Power Omar Ayub while presiding over emphasized, addressing as chief guest at the Board’s 121th meeting said that present closing session of a seminar titled: ‘Energy government is working seriously on Security Policy: Thinking Beyond the controlling theft and losses as well as re- Norm.’ President CPSD, Lt-Gen. Agha M hauling of transmission and distribution Umer Farooq (retd) welcomed the system of country to remove bottlenecks in participants in his inaugural address. He the supply of electricity to consumers. underlined the significance of the subject, Sustainability in the system is only possible saying that commitments of the energy by brining transparency in power system, producer and habits of consumers need to be induction of indigenous and renewable changed to encourage conservation, energy and introduction of new technology efficiency and a fuel mix, comprising in transmission and distribution indigenous resources. Renowned nuclear systems. Managing Director PPIB Shah scientist Dr Samar Mubarak Mand presented Jahan Mirza briefed the Board on a keynote speech at the inaugural session implementation status of the portfolio of and shared his thoughts on the energy power generation and transmission line security prospects in Pakistan. Seminar projects currently being processed by PPIB.