KESC begs SHC to lift tariff stay

KESC pleaded to the Sindh High Court to remove the interim stay slapped by the division bench.


Muhammad Asghar June 23, 2010

The Karachi Electric Supply Company (KESC) on Wednesday pleaded to the Sindh High Court (SHC) to remove the interim stay slapped by the division bench on the levying of Fuel Adjustment Charges by the power utility, and looked to pass the blame on to the country’s power regulator, Nepra.

The division bench was hearing four identical petitions against the KESC and Nepra that challenged the privatisation of the utility and the proposed increase in the tariff.

Replying to the court’s queries on petitions against the utility, the KESC said that the stay, issued by the court on the last hearing on June 17, was causing financial losses to the company.

In its defence, the KESC’s counsel Kumail Sherazi contended that they only receive 10 per cent of their total energy supply from Wapda and that fuel is used in every method of energy generation.

After the initial hearing, the divisional bench decided to hold the hearing in the judge’s chamber.

The KESC submitted new documents and statistics and looked to pass the blame on to National Electric Power Regulatory Authority (Nepra), arguing that the power ulitilty cannot increase tariffs itself and that the decision was approved by Nepra. “Hence, we cannot be held responsible,” submitted KESC.

The utility suggested that the Sindh government should ensure the provision of uninterrupted gas supply so that resources are not spent in buying furnace oil. The finance ministry should also be asked to continue providing the subsidy to KESC.

In reply, advocate Javed Siddiqui, representing one of the four petitioners, the Law Foundation, stated that he needed more time to study the documents and statistics submitted by KESC and Nepra.

Despite the KESC’s pleas, the two-member bench, comprising Chief Justice Sarmad Jalal Osmany and Justice Tufail H Ebrahim, adjourned the hearing for one day (to June 24), and kept in place the stay on the KESC’s tariff increase.

Nepra’s counsel Anwar Kamal and KESC director tariffs Abdur Rauf also appeared in court.

Published in The Express Tribune, June 24th, 2010.

COMMENTS (2)

Mohib ud Din FCMA,FCA | 11 years ago | Reply I wonder as to why poor KESC consumers being punished for the line losses which is flagrant mismanagement, poor line transmission infrastructure and financiqal cost for non-payment of KESC bills by the govt and other institutions. A neutral technical committee must be formed to evaluate thoroughly variable and fixed cost icluding theoretical line losses to work out cost of production. There are many meters at one place to be in a reduced rate slab. KESC to look into it. Currently installed meters are showing inflated reading and despite complaints to one in the KESC pay heed to it. No attention on the above factors and increasing tariff almost on every quarter would encourage electricity thief and *Kunda* Culture in the City and the honest poor consumers continued be penalised in the name of fuel adjustment cost.
Syed A. Mateen | 11 years ago | Reply KESC is already charging high tariff to its consumers after the KESC was privatized. The unending load-shedding have made the lives of people miserable as Karachiites cannot live in the load-shedding any more. The Sindh High Court should ask KESC what was the generating capacity of KESC at the time of privatization and what generating capacity KESC has increased till today after privatization? Is not that only rich people are KESC consumers but the majority belong to the poor and the middle class families. People are committing suicides due to economic compulsions and KESC is begging SHC to wave off the ban to increase is power tariff? Can KESC give employment to all those people who cannot afford to pay KESC high tariff and inflated bills? If not then KESC instead of hiking in power tariff should reduce the tariff so that it should become “consumer friendly tariff”. If the present management of KESC is unable to run the show from the present tariff charged to the consumers, it should handover management of KESC back to the government. I do not have alternate energy source and therefore till date have not asked KESC to disconnect my electricity connection. SHC should go for complete accountability of KESC and ask the KESC management to submit the profit and loss reports after KESC became a private entity. People of Karachi are looking towards the Honourbale Court to hear what relief the Hourable Court may grant to KESC subscribers. The only hope for people of Pakistan after Al-Mighty Allah are the Honourbale Courts of Pakistan and no body else.
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