Presentation to Energy Task Force Khyber Pakhtunkhwa 13 th April 2012

2. GOVERNMENT OF KHYBER PAKHTUNKHWA ENERGY & POWER DEPARTMENT Presentation to Energy Task Force Khyber Pakhtunkhwa 13th April 2012

3. Aim • The entire country is facing acute Energy shortage which is likely to increase during summer. • National Energy Conference was held in Lahore on 9-04-2012, hosted by Punjab Government chaired by the Prime Minister of Pakistan to address the issue. • The Conference made certain recommendations which are to be shared with the stake holders and to enable implementation. • For this the Provincial Government has notified an Energy Task Force.(ETF)

4. COMPOSITION OF ENERGY TASK FORCE 1. Senior Minister for P & D/ E & P Chairman 2. Senior Minister, Local Govt:, Election Member & Rural Develop 3. Minister for Information & Public Relations IPC Member & Transport 4. Minister for Industries, Commerce, Member Mineral Develop 5. Minister for Health Member 6. Minister for Law Parliamentary Affairs Member & Human Rights 7. Minister for Labour Member

5. ROLE OF ENERGY TASK FORCE IN KHYBER PAKHTUNKHWA • The Task Force is assigned the work for engaging in a consultative process with the stakeholders for successful implementation of recommendations of the Energy Conference. The Task Force shall also periodically review the progress on implementation.

6. Sequence of presentation: • Present situation and extent of problems • Recommendations of Energy Conference • Way forward

7. Present situation and extent of problems

8. Pakistan Energy Sector Overview Summer and Winter • Supply- Demand Gap • Summer Projected (Peak) • 3500 to 4500 MW • 7 - 9 hrs load shedding • Supply- Demand Gap • Winter (Peak) • 3500 to 6000 MW • 8-16 hrs load shedding

9. Historical Supply & Demand

10. Power Sector – Generation Addition

11. Generation Additions (2008-2012)

12. Power Sector – Load Growth • Demand Increase per year = 7.31% • Actual number of consumer increase 2002 – 2011 • Total = 5.38% (average per year growth)

13. Key reasons for shortfalls • Liquidity crunch resulting in under-utilization of installed capacity • Diminishing gas supply • Low priority to conservation and efficiency • Stalled progress on reforms

14. Key reasons for shortfalls – Liquidity Crunch • Tariff Differential – (Rs 9.56/unit average cost vs Rs 7.84 /units sale price = Rs 1.72/unit) • Fuel Price Adjustment Rs. 101 b unrecovered a) 1- 350 units court stay in Punjab and Sindh and all FPA collection stopped in KPK b) Late NEPRA determination from fuel consumed from Sept 2011 to Jan 2012 3. Equalization surcharge (no raise in tariff in FY12) Court Stay – Rs 80 b • Low recoveries from DISCOs (83%) of current bills • Higher than NEPRA allowed system losses – Rs 24 b • Total Receivables Rs 354 b (Private 169 b, KESC 54 b, Provincial 85 b, Federal 6 b) • AJ&K tariff Rs 14 b • AGRI TUBEWELL • GOP SHARE @ 40% IN BALOCHISTAN = 5 B Rs • Support in Payment of PUNJAB SHARE @ 12.5% = 6 B Rs • Support in Payment of BALOCHISTAN SHARE @ 30% = 7 B Rs

15. AVERAGE GAS REQUIREMENT VS. ACTUAL GAS SUPPLIED TO GENCOS POWER STATIONS (MMCFD)

16. Projected Demand& Supply Position April to August 2012

17. RECOMMENDATIONS OF ENERGY CONFERENCE

18. GENERATION – Immediate

19. …CONTD2- Release of Receivables and Subsidies

20. GENERATION – Medium Term

21. DISTRIBUTION – Immediate

22. DISTRIBUTION – Medium Term

23. CONSERVATION – Short Term

24. CONSERVATION – Short Term

25. CONSERVATION – Medium Term

26. THE WAY FORWARD

27. WAY FORWARD: Action by Provincial Government (GENERATION /DISTRIBUTION)

28. WAY FORWARD: Action by Provincial Government ( TARIFF & INSTITUTIONAL REFORMS)

29. …CONT

30. WAY FORWARD: Action by Provincial Government(CONSERVATION)

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