Demand and Supply Issue (2008-2009)

Raza Hameed


In 1994 our major source of power was hydel. Cost of hydel is
only in the beginning which includes construction of dam and water
reservoir. It is the cheapest source with no input cost and very low
administrative cost .It is the best natural way of producing energy. No
noise, no pollution and many associated benefits. This source cost wapda
less than Rs1 per unit. In 1994 IPPs came into action using thermal
power generators running on diesel. After purchasing electricity from
IPPs the purchase price of Wapda increased up to Rs 6 and 12 per unit
depending on the deals with different IPPs. This method proved to be
very costly and full of pollution. Due to price hike of diesel in the
past, the input cost (cost of diesel) increased by many fold. So the
economy was hit and the balance of payment was disturbed badly. Actually
this method was meant for short term solution. But due to political
instability we lost our sight from the real scene and based our future
energy plan on a very costly method. Why? Answer is, as a nation
including politicians, bureaucrats, policy makers and everybody enjoy
their present leaving and passing these queries, fears and problems to
the next generation hoping that all will be well. More than 35 years
past away and no concrete solution appeared. But the people of Pakistan
specially our new generation are facing this bitter truth i.e., load
shedding We have lost rather wasted our precious 35 years. We cannot
makeup this gap. Whenever we will try to make a deal with the foreign
investors regarding any power generation project, it will always be
unfair. unfair why? Because, when somebody knows that you are dying for
what he has, he will blackmail you and make u go his way. This is called
business. We have lost both the time and competitiveness. If we go on
making deals with IPPs now known as “Rental power houses” which will
provide us electricity as high as Rs19 per unit. We will lose a lot in
all fields. Such as:

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