Energy Crisis in Pakistan - 2194 Words

Energy crisis in Pakistan Outline: Introduction Pakistan is a victim of energy crisis A shortfall of energy is called energy crisis Energy crisis is not specific to Pakistan Causes behind the energy crisis Poor management Circular debt Power theft and Power wastage Corruption and lack of accountability Mis-allocation of resources Increasing price of oil in international market In past no efforts were made Alternative energy resources: Hard technologies and Soft technologies Hard technologies: Nuclear power Natural gas Natural gas import Coal LNG Soft technologies: Hydropower†¦show more content†¦In Pakistan power sector has effectively become hostage of Circular Debt which is created when one party fails to clear its dues to the second party. The second party in turn defaults on their payment commitments towards third party. However inefficiency in collection of revenues from the private sector and ineffective contractual agreements between Pakistan Electric Power Company (PEPCO) and Karachi Electric Supp ly Company (KESC) are the major causes for interoperate debt. Power theft and power wastage or transmission losses are other reason which paved the way for loadshedding. Line losses, mainly power theft alone contributed around 125 billion to the circular debt. Transmission losses happen when due to poor infrastructure consumer cannot get enough electricity to fulfill daily requirements. Mere rise in power tariff could not overcome on the power theft and transmission losses. Corruption in pertinent departments of electricity and lack of accountability on part of those who stay at the helm of affairs is another reason of energy crisis in Pakistan. The financial scam in the rental power plants (RPPs) is a recent example of corruption in energy sector. 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