On Tuesday, the National Electric Power Regulatory Authority (NEPRA) released a performance evaluation report (PER) of the public sector power generation company (GENCO).
GENCO is a power generation company owned by WAPDA, with GENCO I, II, III, and IV subunits.
According to the report, as a result of prolonged power outages, GENCO has caused losses of around Rs. 64 billion.
Had these units not availed higher outage hours, a huge amount of energy — around 9373.003 million kWh – could have been contributed by them to the national grid, amounting to Rs. 64.629 billion.
Power outages at GENCO I, II, and III exceeded the allowed limits agreed to in the power purchase agreement. It not only brought down the availability factor of power plants but also caused losses of Rs. 64.629 billion.
Jamshoro, Guddu, and Kotri generation plants caused losses of above Rs. 48 billion. Nandipur and Muzaffargarh power stations were responsible for losses of Rs. 7.7 billion and Rs. 6 billion respectively. Faisalabad station caused Rs. 2 billion in losses.
The report highlighted that most of the power stations of GENCO did not fulfill the approved net capacity standards. As a result, 479.573 million units of energy were lost. This incurred an additional financial burden of Rs 4.025 billion.
NEPRA also revealed that a large number of GENCO transformers in the national grid are overloaded. This results in the electricity network running into stability problems.
Moreover, several units of GENCO I, II, and III power stations were on standby mode for long durations. It prompted the consumption of auxiliary power, causing an additional loss of Rs. 1.031 billion.
GENCO says that prolonged standby mode is due to the guidelines of the system operator, National Power Construction Corporation (NPCC), due to no demand and fuel constraints.