Sindh

KESC, killing the economy slowly

Syed Ali Raza Abidi June 08, 2010

Being a monopolistic utility provider, there lies great responsibility on the management of KESC to provide fair and professional services to its consumers.

Normally, in the developed world there is more than one utility supplier of the same service, which gives the consumers a chance to select from the packages which best suit their needs, and also keeps the competition healthy giving a constant drive for service improvement amongst the providers.

Karachi is at the mercy of KESC, which is a privatised utility unit and a business that is so profitable, that in spite of the losses they claim to bear, they end up making huge profits by the end of the year. NEPRA, the supposed regulatory authority, is not doing anything for the protection of consumer interest and is constantly legitimising the requests for an increase in tariff from KESC to be levied on Karachiites on various grounds and reasons.

It is strange that despite the mandatory loadshedding, our bills do not reflect any relief. Rather, we end up paying more than before because KESC somehow gets an approval from NEPRA for adding something on to the prevailing rates, and it does not appear to stop.

As a result the cost of production for our industries, if compared to last year is up by 50 per cent to say the least. Already, many export businesses have been damaged because they are unable to compete in the international market because Pakistani products are expensive when contrasted with global competition. India, Bangladesh and Sri Lanka are able to offer the same goods at cheaper prices compared to what our end product comes out to be. This impact is set to reflect our economic conditions and balance of payments at the end of the fiscal years to come.

Such a move by the management of KESC/NEPRA is slowly bringing the country to its knees, completely damaging its inward flow of foreign exchange, and no matter how many times this point is stated, it does not seem to reach them.

Maybe it is time our courts intervene and get this matter sorted out, even if it is a private business. There is a limit to the blatant and daring advertisements by KESC where they claim “They Steal You Pay” while the company itself is able to get away with charging regular paying consumers for the losses KESC faces on top of the regular hike in tariffs.

Syed Ali Raza Abidi is a businessman interested in politics and loves Pakistan. He actively tweets @abidifactor

This article has been revised to reflect the following correction:

Correction: June 09, 2010

In the first line, KESC was spelt KSEC. This has been corrected.

OGRA was incorrectly cited as the regulatory authority. It has been replaced with NEPRA.

COMMENTS (9)

Arif | 13 years ago | Reply KESC and those supporting them in benefitting from the tricling down of corruption gains. Its like KESC has become a evil monster, with no shame, ethics, concious etc. having its tanticles of straws over Karachi's middle (ofcourse not higher ups) class to suck their blood. I live in Gulistan Jauher and in my area we have a daily load shedding on average of 5 hours, .. in addition there are volatge problems, which has basically destroyed our fridge a couple of times and TV a few times. There is not enough voltage to run the singlr airconditioner wich is supposed to be a low voltage consumption unit ... haah There are a total of 4 individuals in the house out of which 3 are out during the day. This month our bill was 33000, and before that 22000 and before that 28000, ... no justification as to how, why. I pray that the KESC management and owners don't die, but face such wrath from the Almighty that they wish of death. These people are not humans nor animals as even animals have some ethics

syed akhlaq hussain abidi | 13 years ago | Reply The writer has touched upon a topic which can proove to be a turning point for the patience of Karachiites. This increase has been happening already a few times and the tariffs are over 55% then last year.A littlle noise,some boycott of assembly sessions,some statements and we are waiting for the new Increase.This is the musical chair game. Can any body tell me ; How many hours a day KESC provides Electricity at an average less then they used to provide before Privatisation. What was the total gross revenue at that time and now. How much did the buyers paid to Government of Pakistan for taking over control and how much have they already taken out of country Who are the real owners of this Utitlity back in Caymen Island or Island of Man Why is IMF putting condition to raise Elect.TARIFF WHICH PROVIDES EXTRA REVENUE TO THIS PRIVATE ORGANISATION AT THE COST OF PEOPLE Are the resident of Kutchi Abadi who in connivance of KESC staff use Kunda and steal Electricity are the thief or the KESEC IT SELF whio has changed all old meters and have placed New meters which are running atleast 30% faster and there is No one to check upon them. What is the meaning of Variable Charges in Electricity Bill and who approves them. The people of Karachi should know that all is done in league and unless they stand united and come out in street one day every one whether he is home consumer ,an industrialist or shop keeper and come out one day and stand in street just outside your home,Industry,shop at one time and tell these people that ENOUGH IS ENOUGH AND if it is not stopped then People power should take over. God help Pakistan we are moving to that stage, just need a leader!!!!

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Ahtesham Hussain | 13 years ago | Reply It is absolutely true that we must have more than a supplier this not only increase competition towards quality but also in price and services. Load shedding is not only impact physically but also psychology, a person could not give his 100% in office or business if he is not mentally relax. With increasing our production cost we also do not able to provide on time delivery of goods which may leads decline trends on next year export, leakage of foreign exchange is not like that we have purchased oil from it but also we might not have more FE if we will not produce competitive south Asian goods. I would say government should have naked eye on KESC/Load shedding if they are bit sincere.

Ahsan Shafik | 13 years ago | Reply @ Abidi: What? OGRA is not the regulator for power industry! its NEPRA. @ jeddy: 100 bucks from every consumer! go investigate the prices of Furnace Oil and teh trend it followed in the past 10 yrs or so. i hope you are at least well aware of international oil prices! @ kanwar govt was taking actions for the past .. say .. 50 yrs or so .. @ nabeel pakistanis believe in conspiracy theories alot .. give these theories a break!

Jeddy | 13 years ago | Reply This is and ideal time for the opposition to stand against the existing government on this issue and replace it. But if they stand by government's decision to increase electricity charges there is chance for no chance for the opposition to replace the government. KESC should have competition. In a city of 17 million there should be no electricity meters. There should be no per unit charges. The KESC can earn Rs 1 billion per month if it only charges Rs 100 from each and every type of consumer. The only thing the KESC sells is electricity. No business ever discourages people to buy its products. Every business wants more customers and sell more of its goods. KESC is a business which instead of encouraging people to use more electricity wants cut down on their consumption which is absurd. No real business ever does that. The truth is the KESC is not an electricity supplier at all. It is a tax collection branch of the government.

Anonymous | 13 years ago | Reply MQM has made a coalition government in Sindh with PPP. The increase in tariff of KESC is done while PPP is in the government. Today MQM walked out from Senate while protesting the hike in power prices, but this is not enough. Members of MQM should resign from the coalition government. If MQM remains in the government, it means MQM will be equally responsible for pushing Karachiites towards the wall. Enough is enough. It is time for MQM to apart from PPP government in Sindh. If MQM wants to stay in the government then it should help out its voters in these critical times when earning of the people is much less comparing to the expenses people meet. I want to hear a very loud and clear word from MQM Chief Mr. Altaf Hussain. His voters would like to hear from him either MQM is with the people of Karachi or with the Government? Mr. Altaf Hussain should choose one – either he is with the people or he is NOT with the people.

Nabeel | Create Your First Website | 13 years ago | Reply I completely agree with the writer. KESC is getting away with all this, and I wonder why? There is no check and balance. KESC has many, many excuses, but I don't buy that. Why is KESC getting away with all this? Why doesn't the Government do anything? Are we sure it is not a conspiracy to damage the economy/businesses in Karachi? I think it is time for the courts to summon KESC, like the writer said.

Express | 13 years ago | Reply Please correct, it is not KSEC

Kanwar Nabeel | 13 years ago | Reply absolutely right , kesc has become a slow poison which is being given to karachite to that they die slowly specially in the business sector ,when we compare our exports to previous years its decreasing every year , the main reason for this is the increase of manufacturing we are not being able to compete with the other rivals in the region even bangladesh has left us behind i think its time for government to take some actions regarding KESC otherwise it would be too late

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