Last month PTI government raised base power tariffs by Rs 1.95 per unit. This month NEPRA has determined tariff increases of Rs 1.53 per unit in Fuel Adjustment Charges for December and Rs 0.83 in Quarterly Adjustment for 4th quarter of 2020. 1/17
So your electric bills for February maybe higher by Rs 4.31 per unit. That’s a Tabdeeli we will feel in our monthly budgets.

The PTI govt takes no responsibility for anything and just blames PMLN’s previous govt. 2/17
For instance when the entire country suffered a blackout a minister blamed PMLN. But when asked exactly what happened he said he didn’t know. He just “knew” it was PMLN’s fault. Later it turned out that Einsteins in PTI forgot to carry out routine maintenance last summer.
3/17
So PTI blames increase in basic tariff (Rs 1.95 of Rs 4.31) on PMLN saying that this is due to higher fixed costs incurred as a result of PMLN setting up more power plants. But that is crazy. The higher fixed cost should now divided by an even higher number of units whose 4/17
generating capacity PMLN installed. And the total cost of all PMLN plants is lower than all previously set up plants. Of course we had to set up power plants. In 2013 we had 12 to 18 hours of load shedding in most of Pakistan. 5/17
The capacity PMLN set up produces the cheapest thermal power in Pakistan. So the total savings is huge. Take for example the furnace oil plants set up under Gen Musharraf that have approx Rs 2 per unit fixed cost remaining today. The fuel cost of that plant is Rs 13 per unit 6/17
for a total generation cost of ~ Rs 15 per unit. Compare that to world’s most efficient LNG plants set up by PMLN that cost Rs 4 as fixed cost but cost only Rs 6 as fuel cost for a saving of Rs 5 per unit. And these LNG plants are owned by the govt so no money is going out. 7/17
The coal plants set up by PMLN are even cheaper and produce power at Rs 9 to Rs 10 per unit., which includes capacity cost of around Rs 5 per unit and fuel cost of ~ Rs 5 per unit. 8/17
Yet the price govt is charging industry is Rs 20.73 per unit, commercial is Rs 23.55 per unit and homes with 5 kw connection is Rs 22.65 per unit. So why are we still running such a high circular debt and why did the govt raise tariffs? 9/17
Five reasons. One, the govt is only collecting 88% of the bills it sends out. That is, 12% of the customers don’t pay for electricity & we all have to pay for them. Bill collection had increased to 93% under PMLN from 87% but it has been brought back down in 2 years of PTI. 10/17
Two, transmission and distribution losses, which were 21% when PMLN came in 2013 and were brought down to 18% by 2108 have risen again to 19%. That’s a significant loss increase under PTI.

Three, the huge sudden devaluation resulted in increased capacity payments as 11/17
payments are dollar-based. (That devaluation was two years and tariffs were already increased. What was the need again?) Add to it the mindless more-than-doubling of interest rates by PTI that meant that late payment charges to IPPs more than doubled. 12/17
(The govt now owes over Rs2400 billion on account of circular debt).
Four, and we have been talking about this all year, the incredibly expensive LNG purchase by this govt. Had the govt bought it on time, like India or Bangladesh did, it could’ve saved maybe 30% to 13/17
50% on LNG and hundred of billions of rupees.

And five is the mind boggling decision of making electricity by Furnace oil and Diesel. For instance in the December increase in FAC of Rs 1.53 NEPRA has accepted govt request that it be allowed to raise tariffs 14/17
by Rs 55 crores that it spent on generating power by diesel. Japan, America and Saudi Arabia don’t even produce grid power by diesel because it is so expensive. But PTI government does. There was no fathomable reason to do so.

And it used Rs 3 bil of Furnace oil.15/17
Furnace oil costs twice and diesel three times LNG. Had PTI imported LNG there would have been no need to produce power by furnace oil & diesel. Hence one reason we will be made to pay extra in Feb is due to this decision by PTI govt to produce power using diesel & furnace oil.//

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Miftah Ismail

Miftah Ismail Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @MiftahIsmail

14 Feb
گذشتہ ماہ حکومت نے بجلی کے نرخوں میں 1.95 روپے فی یونٹ اضافہ کیا تھا۔ رواں ماہ نیپرا نے دسمبر کے لئے فیول ایڈجسٹمنٹ چارجز میں 1.53 روپے فی یونٹ اضافے اور 2020 کی چوتھی سہ ماہی کے لئے سہ ماہی ایڈجسٹمنٹ میں 0.83 روپے اضافے کا تعین کیا ہے۔ لہذا آپ کے فروری کے الیکٹرک بلوں⬅️
میں فی یونٹ 4.31 روپے زیادہ اضافہ ہوسکتا ہے۔ یہ ایک تبدیلی ہے جسے ہم اپنے ماہانہ بجٹ میں محسوس کریں گے۔

پی ٹی آئی حکومت کسی بھی چیز کی ذمہ داری قبول نہیں کرتی ہے اور صرف پی ایم ایل این کی سابقہ ​​حکومت پر الزام عائد کرتی ہے۔ مثال کے طور پر جب پورا ملک بلیک آؤٹ کا شکار⬅️
ہوا تو ایک وزیر نے پی ایم ایل این کو مورد الزام ٹھہرایا۔ لیکن جب ان سے پوچھا گیا کہ کیا ہوا ہے تو انہوں نے کہا کہ وہ نہیں جانتے ہیں۔ لیکن وہ "جانتے تھے" یہ پی ایم ایل این کی غلطی تھی۔ آخر میں یہ پتہ چلا کہ پی ٹی آئی کے قابل لوگ گذشتہ موسم گرما میں معمول کی maintenance کرنا⬅️
Read 16 tweets
8 Dec 20
As you know Ali bhai this matter was in govt’s hand and under PPRA rules during our term yet we still bought LNG in time and cheaper than other players in the market. And that too under constant slanderous and groundless criticism from all quarters. 1/9
The PTI govt missed two great opportunities on LNG this year. First to do a one- or two-year deal to purchase LNG for $4 or less (it’s buying at over $7 now, losing millions of dollars monthly for next two years). And second to tender in August for gas in December rather than 2/9
delay till October thus losing over $40 million just in December. But rather than admitting its mistakes it is coming up with increasingly convoluted and shifting excuses, and of course blaming the PMLN! For instance PTI says PMLN didn’t get any storage built. 3/9
Read 9 tweets
23 Nov 20
1. SBP has released its annual report. Statistics confirm a continuing economic downturn. Our GDP growth went from 5.5% in 17/18 (PMLN’s last year) to 1.9% in 18/19 and -0.4% this past yr 19/20. In 20/21 the govt expects GDP growth to be 2% and World Bank forecasts an anaemic 1%.
2. Given our population growth rate of 2.4%, in each of the three years PTI will make Pakistanis poorer on average by 0.5% (18/19), 2.8% (19/20) and 1.4% (20/21). This is not a record we can be satisfied with.
3. Inflation increased from 3.9% in 17/18 to 7.1% in 18/19 and 10.2% in 19/20 with urban food inflation at 14.6% and rural food inflation at 16.4%. Given that less well off ppl spend almost all their income on food, this is causing extreme misery on poor & lower income households
Read 19 tweets
8 Oct 20
1. Petroleum Division (PD) has issued very political and misleading tweets in reaction to my earlier tweets. Before that too the Energy Ministry had issued a factually incorrect press release attacking me that was not worthy of response. But today I think it’s best to respond.
2. The Energy Ministry in a press release dated Sept 25 said that “perhaps Mr Ismail does not know that the terminals are running at full capacity”. Well, THEY ARE NOT. From Sept 1 to the date the Ministry sent the press release, the PGPL terminal was running at 475 MMCFD
3. against the contracted capacity of 600 MMCFD. The statements of the Ministry are dishonest, and disappointing.

Then the Ministry again said that a 17 km long pipeline is required to give more gas to Karachi. This again is not true. They can give more gas to Karachi if they
Read 22 tweets
2 Oct 20
1. A 5 million dollar question is why is Ali Zaidi the Ports minister tweeting about LNG terminals which are the responsibility of the Petroleum ministry. Of course in character for PTI Ministers, his tweets are full of innuendoes & falsehoods.
Why this personal attack on me?
2. Because I recently said that the Ports Ministry is delaying grant of permission to companies at Port Qasim to set up LNG terminals by demanding both legal and illegal ‘compensation’. This is now common knowledge and a source of frustration for the Petroleum Ministry officials
3. and potential investors. In 2 years PTI has not been able to set up a single new LNG terminal and Pakistan is experiencing gas shortages that will only get worse.
Now to his accusations. He says the LNG terminals that the PMLN set up are some of the most expensive in the
Read 15 tweets
25 Sep 20
1. There is now considerable load shedding across Pakistan and particularly acute shortage of power and gas in Karachi. And gas shortage will only increase all over Pakistan as the winter approaches. Let’s see why this is happening. A little background first.
2. When PMLN came to power in 2013 Pakistan’s maximum power producing capacity was of 12,500 MWs. And we had piped local gas of about 3000 million cubic feet of gas per day (mmcfd). Over time gas production from fields depletes and our gas production was depleting too.
3. During our tenure we started gas production in 115 fields, a record, but almost all of these finds were small. We managed to keep supply in SSGC (1300 mmcfd) about the same but supplies decreased across the SNGPL network (from 1700 to 1300 mmcfd).
Read 15 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!