K-Electric, KWSB behind power crisis in Karachi, says ministry
Leghari blames power utility for ‘mismanagement, system inefficiencies’
The Nepra report highlighted that K-Electric had failed to utilise its idle generation capacity on the pretext of absence of gas supply from SSGC despite the fact that closed plants could be run on alternative fuel. PHOTO: FILE
ISLAMABAD:
Instead of finding a solution to the deepening power crisis in Karachi, blame game has intensified as the federal government has held Sindh administration and K-Electric responsible and has asked the province to address the issue.
Minister for Power Division Awais Ahmad Khan Leghari, in a letter sent to Sindh Chief Minister Syed Murad Ali Shah on Friday, blamed K-Electric and one of the provincial departments, which had defaulted on energy payments, for triggering the electricity crisis in Karachi.
He emphasised that the federal government, through the Ministry of Energy (Power Division), had made all-out efforts to tackle energy shortage in the country by undertaking various initiatives. These steps included power generation to bridge the demand-supply gap, sustained liquidity for the power sector and infrastructure development to ensure efficient delivery of electricity to end-consumers.
Karachi being the hub of business activity, industrial development and one of the largest cities of Pakistan had always remained a key focus for the government of Pakistan, he pointed out.
The minister said K-Electric, which was responsible for electricity supply to Karachi, had also been supported by the federal government for efficient electricity generation for the city.
“K-Electric being a power entity is supplying electricity on a commercial basis. The recent energy crisis being faced by Karachi in the form of load-shedding is the result of mismanagement, system inefficiencies and commercial mishandling by K-Electric,” Leghari said.
“This had been very clearly highlighted by Nepra in its report on the energy crisis in Karachi.”
The report highlighted that K-Electric had failed to utilise its idle generation capacity on the pretext of absence of gas supply from Sui Southern Gas Company (SSGC) despite the fact that closed plants could be run on alternative fuel.
The halt to gas supply could not be just attributed to the delay in payments by K-Electric to SSGC or absence of a gas sales agreement, the minister said, adding liabilities of provincial government departments like the Karachi Water and Sewerage Board (KWSB) worth Rs32 billion had played a key role in rendering the power utility incapacitated in making payments.
He emphasised that the federal government was expediting the resolution of issues between SSGC and K-Electric and at the same time the provincial government should realise its responsibilities and ensure that its department did not default on energy payments so that the issue could be resolved expeditiously.
He pledged continued support to the extent of the federal government’s responsibility for ensuring power supply to Karachi.
Earlier, the Ministry of Energy (Power Division) called an emergency meeting on Friday this week in an attempt to resolve the dispute between K-Electric and SSGC on the intervention of power-sector regulator.
Nepra had warned the federal government about law and order situation in Karachi in summer months in the wake of prolonged outages and recommended immediate restoration of gas supply to the power plants of K-Electric.
After the meeting, Leghari categorically declared that gas supply to K-Electric would not be restored until a payment agreement was signed.
Talking to the media, he said K-Electric had to pay Rs70-80 billion to SSGC and until the row was resolved or a formula was agreed, gas supply would remain an issue. “Gas cannot be provided without any agreement,” he said.
Published in The Express Tribune, April 22nd, 2018.
Instead of finding a solution to the deepening power crisis in Karachi, blame game has intensified as the federal government has held Sindh administration and K-Electric responsible and has asked the province to address the issue.
Minister for Power Division Awais Ahmad Khan Leghari, in a letter sent to Sindh Chief Minister Syed Murad Ali Shah on Friday, blamed K-Electric and one of the provincial departments, which had defaulted on energy payments, for triggering the electricity crisis in Karachi.
He emphasised that the federal government, through the Ministry of Energy (Power Division), had made all-out efforts to tackle energy shortage in the country by undertaking various initiatives. These steps included power generation to bridge the demand-supply gap, sustained liquidity for the power sector and infrastructure development to ensure efficient delivery of electricity to end-consumers.
Karachi being the hub of business activity, industrial development and one of the largest cities of Pakistan had always remained a key focus for the government of Pakistan, he pointed out.
The minister said K-Electric, which was responsible for electricity supply to Karachi, had also been supported by the federal government for efficient electricity generation for the city.
“K-Electric being a power entity is supplying electricity on a commercial basis. The recent energy crisis being faced by Karachi in the form of load-shedding is the result of mismanagement, system inefficiencies and commercial mishandling by K-Electric,” Leghari said.
“This had been very clearly highlighted by Nepra in its report on the energy crisis in Karachi.”
The report highlighted that K-Electric had failed to utilise its idle generation capacity on the pretext of absence of gas supply from Sui Southern Gas Company (SSGC) despite the fact that closed plants could be run on alternative fuel.
The halt to gas supply could not be just attributed to the delay in payments by K-Electric to SSGC or absence of a gas sales agreement, the minister said, adding liabilities of provincial government departments like the Karachi Water and Sewerage Board (KWSB) worth Rs32 billion had played a key role in rendering the power utility incapacitated in making payments.
He emphasised that the federal government was expediting the resolution of issues between SSGC and K-Electric and at the same time the provincial government should realise its responsibilities and ensure that its department did not default on energy payments so that the issue could be resolved expeditiously.
He pledged continued support to the extent of the federal government’s responsibility for ensuring power supply to Karachi.
Earlier, the Ministry of Energy (Power Division) called an emergency meeting on Friday this week in an attempt to resolve the dispute between K-Electric and SSGC on the intervention of power-sector regulator.
Nepra had warned the federal government about law and order situation in Karachi in summer months in the wake of prolonged outages and recommended immediate restoration of gas supply to the power plants of K-Electric.
After the meeting, Leghari categorically declared that gas supply to K-Electric would not be restored until a payment agreement was signed.
Talking to the media, he said K-Electric had to pay Rs70-80 billion to SSGC and until the row was resolved or a formula was agreed, gas supply would remain an issue. “Gas cannot be provided without any agreement,” he said.
Published in The Express Tribune, April 22nd, 2018.