The crisis management solution is to ration consumption & lower the levy, while the govt should focus on real austerity. The point is that the flow of energy into the country cannot be controlled. Hence, whatever resources we have should be fully utilized.
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The energy sector is complex with intertwined linkages. Policymaking cannot separate power (electricity) and fuel (petroleum and gas). They are both at loggerheads over the issue of gas (including RLNG) allocation to captive power plants.
If you cut the gas supply, it adversely affects the Sui companies, and if you keep on providing gas to captive power generation plants, the power sector operating the national grid suffers losses because it has to distribute fixed capacity charges on a lower number of units consumed.
Either way, one of them has to take the hit, so to speak. The estimated total allocation of gas to captive and industrial consumers is approximately 350 mmcfd of indigenous gas and 150 mmcfd of RLNG. Industrial connections in South receive around 150 mmcfd of domestic gas from this allocation. The total number of captive power plants (CPPs) is 1,180; the majority of these (797) are in the Sui Southern network.
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