ISLAMABAD – PTI government to launch unique new winter power policy acrossthe country.

PTI government is all set to unveil new winter power policy next month,according to which electricity will be supplied to all categories ofconsumers at a “flat rate” in winter months aimed at consuming maximumvolume of available capacity.

This was revealed by Secretary Power Division, Irfan Ali at a hugelyattended meeting of Senate Committee on Power headed by Senator FidaMuhammad. “We have started work on winter power policy which is expected tobe finalised in the current month and is to be launched in November 2019,meant to provide cheap electricity to industry, commercial sector anddomestic consumers,” he added.

This facility will be available only to consumers of Discos which impliesthat consumers of K-Electric will not be able to get it.

Secretary Power Division said that electricity rates will be fixed keepingin view the revenue requirements in winter months. Usually, 7000-8000 MWelectricity is available in winter months but according to Secretary PowerDivision, available capacity will be around 14000- 15000 MW. Three projectsie 1800 MW electricity will be generated from Hubco plus Thar, NeelumJehlum in addition to 1100MW from K-IV.

He said presently installed capacity is 35000 MW which needs to be consumedat maximum level. The winter power policy will certainly minimizeindustrial slow down as consumption of gas will be lowered with cheaperelectricity.

“In December 2019, cheaper electricity will be available despite massivedecline in hydel generation,” he continued.

Secretary Power, however, argued that circular debt is a big problem,saying that investment in energy sector cannot be envisaged till the issueof circular debt is resolved. The current volume of circular debt was Rs1.5 trillion of which Rs 860 billion is circular debt (as per approveddefinition) whereas the remaining amount is parked in the books of PHPL.However, insiders claim the volume is Rs 1.6 trillion. He further statedthat in the past growth in circular debt was Rs 40 billion per month whichhas been brought down to Rs 20 billion. He hoped that growth in circulardebt would be minimized by 2020.

In reply to a question regarding revision of agreements with the IPPs,Secretary Power Division stated that GoP has sovereign guarantee agreementswith the IPPs which cannot be revised.