PDM gift to nation

[Olympus81]

But, there is a caveat. The other day Miftah was on TV and he explained that the power requirement in Summer is around 40k MW whereas in Winter it is around 10k MW. He said no company in the world would invest Billions in power projects just to reap benefits 7-8 months a year if they are forced to run based on requirement and hence the capacity contracts were not just a necessity but also the norm all over the world.

Capacity payments are a norm, totally agree. But those capacity payments are at a higher than usual rate. Forget even that. The payments are fixed in foreign currency and not in Pak Rs.

I am sure every well managed country is left with idle capacity during off peak season. The trick is to minimize that as much as possible.

In Pakistan’s case they just went retard with installing power plants with no forecast demand or plan to sell. There is probably bad intent in all of this.

 

[Thəorətic Muslim]

The other day Miftah was on TV and he explained that the power requirement in Summer is around 40k MW whereas in Winter it is around 10k MW. He said no company in the world would invest Billions in power projects just to reap benefits 7-8 months a year if they are forced to run based on requirement and hence the capacity contracts were not just a necessity but also the norm all over the world.

Solutions are simple.

The vision is lacking. As those who have lived privileged lives wouldn't give up their haram passay.

 

[Azad_ Kashmiri]

The gift has not ended yet. The nightmare has only just started…

 

[Mav3rick]

Capacity payments are a norm, totally agree. But those capacity payments are at a higher than usual rate. Forget even that. The payments are fixed in foreign currency and not in Pak Rs.

I am sure every well managed country is left with idle capacity during off peak season. The trick is to minimize that as much as possible.

In Pakistan’s case they just went retard with installing power plants with no forecast demand or plan to sell. There is probably bad intent in all of this.

Payments for international contracts are always in foreign currencies (USD more often than other foreign currencies). Do people think Honda, Toyota, Vmware, Microsoft and other international OEMs etc., accept payments in PKR?

As for the excess capacity, our utilization is almost 90% of the current installed capacity in Summer which means that the calculations and projections were quite accurate. The challenge for the power ministry is to ensure availability of electricity throughout the country at its peak requirement including 10%-15% margin for repairs/maintenance and 20%-25% margin for growth as it takes many years for power projects to come online. It is not a perfect or spontaneous system.

Solutions are simple.

The vision is lacking. As those who have lived privileged lives wouldn't give up their haram passay.

Should have shared solutions, not wishes but practical solutions.

 

[HAIDER]

Capacity payments are a norm, totally agree. But those capacity payments are at a higher than usual rate. Forget even that. The payments are fixed in foreign currency and not in Pak Rs.

I am sure every well managed country is left with idle capacity during off peak season. The trick is to minimize that as much as possible.

In Pakistan’s case they just went retard with installing power plants with no forecast demand or plan to sell. There is probably bad intent in all of this.

Capacity payment is a curse sign by Nawaz and the company. All IPP contracts are signed in UK and Europe under foreign terms and conditions. If Pakistan tries to breach, they will face the foreign courts, not Pakistani courts. And all companies are owned by Pakistani and Nawaz buddies and few Zardari cronies. Expensive power station setup, which is run on furnace oil and diesel, these power stations are only found in Pakistan, extremely expensive to run, and on top govt of Pakistan has to pay even they generate power or not ...not all of them are functional but collect billions of rupees. Imagine now the dollar is over 300 rupee ............these IPP are the cursed, where dumb Nawaz should have focused on improving the transmission line and controlling power theft he focused on building power stations. 30 percent power loss ...billions of electricity stolen every year.............

 

[Olympus81]

There are good points raised:

The IPP contracts can have both local currency and foreign currency component. There is a track record of Pak Rs falling in value hence a wise thing to do would be to de-risk as much as possible in terms of currency fluctuation.

Sahiwal Coal Power Project is built on prime agricultural land, far away from a port, and uses imported coal. Recipe for disaster?

There are multiple **** ups in IPP projects but I will leave it for another day.

 

[ziaulislam]

Ok, the contracts are ironclad. However, in these matters, if intent to defraud the public and the state can be established in a court of law then I am led to believe we should give it a try.

But, there is a caveat. The other day Miftah was on TV and he explained that the power requirement in Summer is around 40k MW whereas in Winter it is around 10k MW. He said no company in the world would invest Billions in power projects just to reap benefits 7-8 months a year if they are forced to run based on requirement and hence the capacity contracts were not just a necessity but also the norm all over the world. Moreover, he proposed that the industry should be forced to utilize electricity by diverting gas away from the industry during Summer and hence the generation should be increased so that we reap the benefits being lost due to non-production of paid energy to IPPs.

What I fail to understand is how the system is being run if there are ways around it through which we can atleast make it reasonable as opposed to the absolute mess the power generation system is.

Army forced PTI hand to stop diverting gas consumption CAP IPPs to use electricity from IPPs

It's mafia on top of mafia

Miftah is wrong in some ways..you have 10,000 me of hydro that falls down to few thousand in winter and can be effectively used for fluctuating demand

It's was your bad decision not build tarbela IV,v first (only summer production)

These are all non sense issues

Anyway current billing has nothing to do with electricity cost it's over taxation

I

 

[ghazi52]

,.,..,

 

[ghazi52]

.,.,.

 

[Mav3rick]

Army forced PTI hand to stop diverting gas consumption CAP IPPs to use electricity from IPPs

It's mafia on top of mafia

Miftah is wrong in some ways..you have 10,000 me of hydro that falls down to few thousand in winter and can be effectively used for fluctuating demand

It's was your bad decision not build tarbela IV,v first (only summer production)

These are all non sense issues

Anyway current billing has nothing to do with electricity cost it's over taxation

I

It's not just a matter of over-taxation (though I have to support over-taxation because we need to collect a very large amount of tax regardless) as imported fuel cost is also rising almost daily.

But whatever the case, we need to think out of the box, we need radical reevaluations and solutions and we need them today. Entire country must get together to find a solution.

 

[HAIDER]

 

[HAIDER]

 

[HAIDER]

 

[python-000]

.,.,.
View attachment 950170

PPP mafia is a bunch voultures & wolves & lord of Corruption & Crimenals as we all witness what's going on with whole Karachi City & how brutally using Shiaisam card & Sindhisam card for hijack & takeover this City...

 

[ghazi52]

.,.,