PM requested to direct SSGC, K-E to provide relief to Karachiites

Murad Ali Shah writes second letter to premier to help resolve power crisis

KARACHI: Chief Minister (CM) Murad Ali Shah has written another letter to the prime minister to direct the Sui Southern Gas Company (SSGC) and K-Electric (K-E) to immediately resolve their differences in the interest of the public and provide immediate relief to the city's residents and industries by reducing load-shedding.

A letter, written by the CM to the prime minister on April 9, says it was in continuation with his earlier letter of March 30 on the same matter.

In his letter, Shah said that in order to resolve matters between K-E and SSGC and to find ways to mitigate the ongoing load-shedding in Karachi, he had convened a meeting on April 7 which was attended by the management and board members of both entities. The managements of both companies were cognisant of the overall situation and presented their respective positions on the issue.



The CM told the PM that the SSGC, in the public interest, offered to increase the supply through the gas management plan provided that K-E pays a security deposit, resolves outstanding payment issues and signs a gas supply agreement (GSA). K-E, on the other hand, committed to provide the security deposit and conveyed readiness to sign the GSA on mutually agreed terms.

The letter further read that the SSGC held a board meeting on Sunday, which reportedly approved the supply of 120 million cubic feet per day (mmfcd) of natural gas to K-E upon furnishing a Rs6 billion security deposit that is equivalent to three months average bill of 150mmfcd gas supply and upon the signing of the mutually agreed terms of reference for the appointment of an independent chartered accountant firm.

K-E, however, maintained that payment of markup or late payment surcharge to SSGC is a complex matter as it involves recovery of outstanding electricity dues from the federal government and other strategic bulk consumers, the CM apprised the PM.



Shah said that although both companies have shown flexibility for the resolution of their issues, excessive load-shedding still persists and the city has not received any relief so far. The residents of the metropolis and local industries are still suffering power cuts of over 10 hours a day. The continuous rise in temperatures has further aggravated the situation, especially when students are appearing in secondary school board examinations. The possibility of a serious law and order situation also cannot be ruled out.

"The CM, therefore, again requests you [the PM] to please direct both the companies to immediately resolve their issues in public interest and provide immediate relief to the city's residents," the letter reads.

The CM added that in the meantime, the SSGC may be directed to supply at least 190mmfcd to K-E for optimal generation of electricity.

A committee may also be constituted comprising representatives from the federal and provincial governments, SSGC and K-E to sort out outstanding payment issues.