ISLAMABAD, Jan 14 (APP):Minister for Power, Omar Ayub Khan Monday said the government is determined to meet the future energy needs of the country and alternate power policy would be announced within next two months.Talking to media outside the Supreme Court, the minister said, at present the energy and the capacity payment component is 60 percent and 40 percent respectively and our institutions have to bear the capacity charges also because Pakistan is single buyer market and it is the government that purchases power from power producing companies.
The minister explained that for the needs of our industrial units, the government has to ensure availability of power in the system. Therefore, it has to pay the power producers, the energy as well as the capacity charges.
He said, the capacity payment includes charges like interest cost and fixed overhead that are paid to these companies to keep their machines prepared for generation under the merit order. The energy payment is made to ensure availability of fuel and lubricants.
He further stated that with installation of more plants, the component of capacity payment may further increase in the bill.
Replying to a question he said, the government is taking effective measures to reduce unemployment through growth of industrial sector.
When asked about conducting audit of previous governments agreements, the minister said, the agreements were reached under 1994, 2002 and 2007 power policies and let the court decide on this matter.
