Electricity woes: KESC cuts power supply to Pakistan Steel

Says mill could not clear dues of Rs52 million.

KARACHI:

The Karachi Electric Supply Company (KESC) on Monday evening disconnected power supply to Pakistan Steel Mills (PSM) because of outstanding payment of Rs52 million.

Talking to The Express Tribune, the KESC spokesperson said the utility company cut electricity supply after 6pm when PSM failed to commit a payment schedule for power dues.

He said earlier KESC and PSM were in talks over an outstanding amount of Rs222 million. Two weeks ago, PSM paid Rs100 million to KESC and released another around Rs70 million in different phases.

Later, when PSM failed to commit remaining payment of Rs52 million, KESC disconnected power supply some time ago. “But we restored the supply because of PSM’s strategic installations,” the KESC spokesperson said.

However, “according to our policy, we do not resume power supply to the defaulter unless it pays all its dues.”

Although Rs52 million was included in overall PSM dues, most of these were of September, he added.

Despite repeated attempts, PSM officials could not be contacted for comment. PSM has also its own power plant that sometimes supplies additional power to KESC but it is not clear how much electricity the plant produces.

Published in The Express Tribune, November 22^nd, 2011.