KARACHI:
A fresh dispute erupted between Sui Southern Gas Company (SSGC) and Karachi Electric Supply Company (KESC) on Thursday as SSGC drastically curtailed gas supply due to KESC’s failure to clear outstanding dues by July 20.
Gas supply to KESC has been reduced to 120 million cubic feet per day (mmcfd) from 180 mmcfd earlier.
“The gas utility was compelled to take this step because its total outstanding dues, to be paid by KESC, swelled to Rs28 billion,” an SSGC statement said. “SSGC has not totally cut gas supplies to KESC. It has only reduced it by 60 mmcfd.”
Giving details of payments, SSGC said KESC paid 50 per cent of the bill last month but this month it did not make any further payments even after the due date of July 20. KESC last paid its full bill in November 2010, it added.
Defending its position, KESC said government departments like water board and others owed billions of rupees to the power company, adding the cash crunch was hindering its operations. Terming the SSGC’s move irresponsible, KESC said it would result in severe shortage of power in Karachi.
The power supplier said the action of SSGC over ‘non-payment of dues’ was an excuse, which was in fact far from reality. Elaborating, it said in the past 12 months – July 2010 to June 2011 – KESC made gas purchases amounting to Rs25.6 billion, of which Rs21.4 billion had been paid.
KESC said it had requested the finance ministry many a times to pay the dues of Rs22 billion, owed by provincial authorities, directly to SSGC and Pakistan State Oil (PSO), but there had been no positive developments so far.
Of the Rs22 billion, Karachi Water and Sewerage Board (KWSB) has to pay Rs14.5 billion and the remaining by the City District Government Karachi (CDGK), police, Rangers and other provincial entities.
Published in The Express Tribune, July 29th, 2011.
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Kesc is bench of corrupt people well supported by a political party and strong media group . Kesc only have reasons and create reasons to not supply power to us . Now a day its performance is worst in last 30 years . I think they also know their time is over and they are focusing just collecting more and more money for them self and for their masters . Time is come for government will take Kesc and put a strong investigation against local boss of Kecs . where the subsidy amount goes . How mush amount they receive though unofficially billing and so on .