Privatisation is not without costs. Would people accept steep hikes in tariffs ?
No it isn't - The same arguments were made when there was talk of the Telecom Industry being Privatized - Now 10-15 years down the lane they are competitive enough to compete with the best out there & are giving the lowest rates ever. Additionally when I talk about Privatizing them its not as if this is some kind of a revolutionary idea never practiced in the world - You've got numerous examples of privatization of the power sector all over the world !
Incidentally these are not my opinions but a unanimity of opinions of some of the leading Industrialists, Energy Sector & Finance Professionals - Dr. Khurshid Shah (Pakistan's Ex Finance Minister) did a series of shows on this on Business Plus where he invited some of the leading personalities from Pakistan's Industry, Energy Sector & the Financial Industry with many of them actually drawn up feasibility reports & submitted them to the Government numerous times without any response.
....and then what? How many people would you put in jail & for how long? Better to confiscate assets instead.
Naturally you don't have to go all the way; last time when the KESC started publishing the names of Energy defaulters in the News...the theft declined ! Start with a few & the rest will follow in line.
That's actually funny. They have to have that much power first (to give 95%, 70% etc). Btw, prioritisation on the basis of revenue received is what is probably being done, which is why rural areas probably have a worse time.
Like I said they do have the power when the Installed Capacity of Power Generation is more than the Consumption - Its the thefts, the default on payments & corruption (even the PM is facing a Court Inquiry on that) what contributed to the cyclical debt & cut the Actual Power Production to much...much less than what we could produce.
And no...its not being distributed on those basis ! But yes the Rural Areas are bearing the brunt of it even if some of them actually do pay their bills on time.
Money.......that's the problem bit.......
Indeed it is - Thats why I mentioned the FBR, the Privatization & most of all the time-frame ! If you watch some of the shows that I mentioned above on Business Plus you'd get to know how many financially sound propositions are actually available if the Government is only willing to look into it.
What is favourable terms? Will Pakistan guarantee that people will pay double what they are paying (those who are paying that is) and are the people okay with that? Even in India, private producers risk bankruptcy because state electricity boards are terrible at paying them. With that kind of risk inherent, you will have to offer private players the moon & then pretty much commit murder(by not paying them) or suicide(by passing on the charges)......
No...no double payment or anything like it ! Perhaps I should've elucidated it more. Mian Mansha - the Owner of Nishat Group of Industries - was talking about how they've conducted a feasibility study whereby we could produce as much 3000 MW of electricity using simply cotton sticks (a byproduct that I don't know of) as fuel for Thermal Power Plants. His Group of Industries already does that - They produce their own power through that & so do some other Textile Giants in Pakistan. He said that he & those others were willing to invest in it if the State facilitates them by getting rid of all the red-tape bureaucratic BS & finally allows them to expand & give power to the smaller industries in their Industrial estates - Right now they can only produce for themselves & aren't allowed to sell power to others !
The same has been related to me by a Sugar Mill Owner - we know - that the State isn't allowing them to expand their operations & give power to the nearby towns, cottage industries & even smaller fellow Sugar Mills by expanding on the power they produce in-house by using Molasses as thermal fuel ! They already power their own Group of Sugar Mills through that.