KESC seeks Rs0.74 per unit tariff increase

Utility faced revenue loss of Rs3.2b in June quarter due to payment defaults.

Zafar Bhutta August 06, 2011


The Karachi Electric Supply Company (KESC) has filed a petition with the National Electric Power Regulatory Authority (Nepra), seeking an increase of Rs0.74 per unit in power tariff on account of fuel adjustment charges for June as well as quarterly tariff adjustment.

In the petition, KESC said 1.38 billion units of electricity were sold in June while in April-June quarter it faced a revenue loss of Rs3.20 billion because of non-payment of dues by consumers.

KESC has been facing cash flow problems as defaulters have to pay Rs36 billion, which has led to frequent disruption in power supply to Karachi residents.

Karachi Water and Sewerage Board (KWSB), which consumes over Rs250 million worth of electricity per month, owes Rs8 billion as it has not paid power bills for the past few years. According to KESC, regular notices have been sent for clearance of outstanding dues, but positive response is awaited.

Power supply to Karachi Development Authority’s (KDA) pumping feeders 1 to 6 is stopped for four hours in a day.

“We will be forced to further curtail our supplies if KWSB did not pay,” KESC said in the petition.

As far as federal government consumers are concerned, Utility Stores Corporation is to pay Rs19.79 million, Pakistan Steel Rs174.03 million, Karachi Port Trust Rs12.67 million, Military Land & Cantonment Board Rs160.95 million, Defence Housing Authority Rs15.23 million, Pak PWD Rs2.30 million, Ministry of Food and Agriculture Rs2.25 million, Ministry of Interior Rs13.15 million and Collector of Customs Rs7.70 million.

On the other hand, provincial government departments owe KESC Rs35 million including Sindh Workers Welfare Board, Karachi Fish Harbour Authority, Indus Mineral Development Corporation, Khoja International Institute of Chest Diseases, Sindh Employees Social Securities Institute and Pakistan Rangers.

Published in The Express Tribune, August 6th, 2011.

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