ECC allows gas loadshedding

ISLAMABAD - Reviewing prices, economic indicators and energy security, the Economic Coordination Committee of the Cabinet under Finance Advisor Shaukat Tarin has permitted the Petroleum Ministry to manage gas supply and demand gap by loadshedding.
Ministry of Petroleum and Natural Resources briefed the ECC about the significance of gas especially between its supply and demand during the peak winter season in the country. The ECC considering the Ministry’s Natural Gas Load Management Plan (NGLMP) for Winter Season (2008-09) approved it and also directed the Ministry to ensure the provision of gas to the domestic consumers. However, the burden of reduced supply will be equitably divided between power sector and industry, an official handout issued here about the details of ECC meeting.
The ECC earlier upheld the recommendations of the Water and Power Ministry regarding the expeditious development of pioneering projects in the private sector. Therefore, the tariff provisions of 2002 power policy and the mechanism developed by National Electric Power Regulatory Authority (NEPRA) were extended to hydropower projects under 1995 Hydel Policy with minimum changes to the project agreements. For increased availability of power, the ECC allowed rental power projects to adopt the same tax treatment as was applicable to rental power projects under WAPDA’s jurisdiction.
According to the handout the committee was concerned about the anomalous situation of local and international price differentials. Despite the phenomenal decrease in international commodity prices, including petroleum products and their consequent reduction in Pakistan, commensurate decrease in local prices was not evident, noted the Committee.