THERE are constant signals that the government is utterly confused about the way forward to deal with the ongoing chaotic situation in the energy sector where circular debt is still increasing at a rapid pace despite the addition of an unbearable burden on all consumers in the shape of the highest tariff in the region. It was shocking to hear from Minister for Power Awais Ahmad Khan Leghari that the government was conducting a review of existing and upcoming power projects, including hydropower and nuclear plants, in response to concerns over energy overcapacity and pricing. He told the Senate Standing Committee on Power that the government was also reviewing the committed projects, even Bhasha and C5, for which they are committed and have already issued letters of support.
Of course, the capacity issue is at the heart of the crisis as the country is forced to pay trillions to IPPs as capacity charges without actual contribution to the national grid. However, it is beyond comprehension not to find a satisfactory solution to these exploitative payments and instead sacrifice hydel and nuclear power plants at the altar of expediency and favouritism, forgetting that these plants have minimal generating cost and are also environment friendly. More importantly, projects relating to water reservoirs have deep linkages to the agri-based economy besides their relevance to bring down the overall energy tariff. It must also be kept in mind that the little progress that we have made towards execution of Diamer-Bhasha Dam has a long history and hard work behind it, which should not be wasted due to short-sighted vision. In the case of nuclear power, we have to realize that only China is willing to extend cooperation in nuclear energy and nothing should be done to derail this cooperation. Instead of slaughtering hydel and nuclear power projects for the sins committed vis-à-vis thermal based IPPs, the Government should explore avenues to convert them to local coal or close them altogether as the Minister has hinted at.
