Representational image. PHOTO: AFP
During a public hearing, Nepra Chairman Tauseef Farooqi said an investigation would be conducted into unannounced load-shedding by K-Electric in the city of Karachi. Reasons for load-shedding would be brought before the public, he said.
There have been protests by people over the prolonged power outages in the city. Protesters claimed that they were facing 12-hour load-shedding and demanded action to stop power outages.
A K-Electric spokesperson said the utility was facing continued challenges on account of inconsistent supply of furnace oil, as compared to its demand, and had been highlighting the challenge so that it could be urgently resolved by relevant authorities. “This fuel shortfall is compromising generation capability at K-Electric’s power plants.”
Explaining the situation, the spokesperson said, “K-Electric’s daily furnace oil requirement is close to 2,800 metric tons these days, while at present we are receiving around 2,000 metric tons per day. Currently, there are pending orders of close to 14,000 metric tons of furnace oil. These are compromising both our own ability to run generation plants and our independent power producers’ (IPPs) ability to supply power to us.”
He said the power utility was taking measures to ensure long-term improvement in its generation fleet’s efficiency and reliability. “Most important among them is the decommissioning of older generation units and the development of Bin Qasim Power Station-III, a state-of-the-art 900MW RLNG plant that is expected to come on stream ahead of summer 2021.”
He said this power plant was critical to ensure that Karachi’s growing demand was met. “In the short term, considering that power demand will remain at these levels for the next three months and in light of constrained supplies from refineries, it is critical that furnace oil supplies are improved through imports.”
Power tariff
The power sector regulator decided to defer decision on increase in electricity tariff.
Nepra said the cabinet had decided not to increase power tariff till June 30 and following this, the regulator also deferred decision on tariff revision for power distribution companies. The Nepra chairman said K-Electric would also face the same treatment like other power distribution companies.
K-Electric had sought a tariff increase of Rs0.297 per unit, which would have an impact of Rs1.38 billion for January-April 2020. K-Electric requested to complete the hearing of its petition and decision could be taken later. The regulator deferred its decision due to policy of the government not to increase prices of electricity till June 30.
Published in The Express Tribune, June 24th, 2020.
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