NEPRA allows KESC to increase tariff by Rs0.32 per unit

Power distributor blames power shortage on cash backlog.

Zafar Bhutta August 16, 2011

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has allowed Karachi Electric Supply Company (KESC) on Tuesday to increase power tariff by Rs0.32 per unit on account of fuel adjustment surcharge in June.

KESC had filed a petition with the National Electric Power Regulatory Authority (Nepra) requesting an increase of Rs0.35 per unit on account of fuel adjustment for month of June and Rs0.39 per unit hike in power tariff on quarterly tariff adjustment.

KESC in its petition said it faced revenue shortfall of Rs3.2 billion due to non-payment of dues from power consumers during April to June 2011.

The power distributor has been facing a huge cash flow problems due to defaulters not releasing Rs36 billion to KESC, resulting in shortfall of power supply to the largest city of the country, said the petition.

Implementation of the Nepra decision is subject to notification of the Ministry of Water and Power.

The Karachi Water and Sewerage Board (KWSB), which consumes over Rs250 million worth of electricity every month, has to pay over Rs8 billion for the past several years. Regular notices were sent to pay the outstanding amount, but there has not been any positive response so far, KESC said in the petition.

The city’s sole power distributor sold 1.38 billion electricity units in June.

According to petition, as far as federal government consumers are concerned, Utility Stores Corporation owes Rs19.79 million, Pakistan Steel Rs174.03 million, Karachi Port Trust Rs12.67 million, Military Land & Cantonment Boards Rs160.95 million, Defence Housing Authority Rs15.23 million, Ministry of Interior Rs13.15 million and Collector of Customs receivables stand at Rs7.7 million.

A total of Rs35,000,000 dues are pending against the provincial government departments 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.

An outstanding amount of Rs12.25 billion is due against domestic consumers, Rs7.75 billion commercial customers, Rs3 billion towards industrial consumers, Rs13 billion to public sector organisations, and Rs0.3 billion towards agricultural consumers.

Published in The Express Tribune, August 17th, 2011.