KESC is responsible for its liabilities, not govt: Dr Asim Hussain

Petroleum minister urges KESC to pay its bills to SSGC.

KARACHI: Federal Minister for Petroleum and Natural Resources Dr Asim Hussain has said that the Karachi Electric Supply Company is itself responsible for billions of rupees in liabilities that it has to pay various departments and the government will not share this burden.

Speaking to the  media during his visit to the Bhit Shah gas field he said that though the KESC management was reputable, the government was studying options in case the Abraaj Group decided to back out. However he also said that this would create a bad impression and effect on the investment climate and the government was trying to help resolve KESC’s issues.

He said that the KESC should continue to produce electricity using furnace oil, and ensure timely payment of its bills to Sui Southern Gas Company instead of continually demanding an increase in gas supply.

Dr Asim said that in backdrop of widening gap between the demand and supply, more gas cannot be supplied to KESC. He also said that the government has to pay subsidy to KESC because there is a difference of Rs6 on production cost of electricity through furnace oil of the tariffs set by the National Power Regulatory Authority. He also said that Wapda was providing 700 to 800 megawatts of electricity to KESC annually. Renowned investor Aqeel Karim Dhedhi claimed on the occasion that the KESC balance sheet itself showed that KESC owed money to the government.

Published in The Express Tribune, September 26^th,  2011.