The Karachi Electric Supply Company (KESC) has worked out a plan that it claims will end load-shedding and reduce power tariff provided the government lends support in different areas including regular payments every month and supply of 267 million cubic feet of gas per day (mmcfd).
Sources told The Express Tribune that the KESC, in a plan submitted to the government, had sought support for executing a long-tem gas sales agreement with the Sui Southern Gas Company (SSGC) to ensure supply of 267 mmcfd of gas as per cabinet and court decisions.
“A new 560-megawatt plant should also be provided with 130 mmcfd of gas as committed under an amended implementation agreement,” the KESC management said, adding government’s support was also required for unbundling the existing vertically-integrated utility into separate generation, transmission and distribution units.
The company has also called for addressing various anomalies in the existing tariff formula as committed under the implementation agreement.
The KESC also wants the government to adjust the company’s payables to public sector enterprises such as SSGC, National Transmission and Dispatch Company (NTDC), Pakistan State Oil (PSO) and Karachi Nuclear Power Plant (Kanupp) against its receivables from other public sector organisations like the Ministry of Finance, Karachi Water and Sewerage Board (KWSB), Karachi city government and other federal and provincial government departments.
“Make regular 100 per cent monthly payments and come up with a mutually agreed payment plan to settle arrears of public sector entities such as NTDC, SSGC and Kanupp,” the KESC said.
It has proposed that it will curtail electricity purchase from the NTDC by 300MW, which will provide some relief to the rest of country. At present, the NTDC supplies 650MW to the KESC and the contract will expire in early 2014.
It has sought support of the government for controlling power theft by amending the 1910 Electricity Act to declare theft a non-bailable offence and also sought stronger support of law-enforcement agencies to protect its vital strategic assets and personnel.
In response to the government’s support, the KESC said it was ready to commit to ending load-shedding in Karachi. It will also reduce electricity tariff and attract foreign investment and equity by converting the Bin Qasim power station from oil-based to local and imported coal-based. It will lead to reduction in consumer tariff and tariff differential claims, a subsidy provided by the finance ministry.
The power company has also planned to set up a 300MW coal-fired power plant at Thar in collaboration with Oracle Coalfields. Transmission and distribution infrastructure will be upgraded with an investment of $100 million.
The KESC also aims to initiate the world’s largest waste-to-energy biogas project at Landhi.
Published in The Express Tribune, February 17th, 2012.
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in the recent few months kesc has done atleast scheduled load shedding... kesc also wants to fire 4500 political appointment employees but govt does not want this and union of kesc is also creating hurdles.. i hope that kesc will become more active
Looking at the past precedents, at present it is difficult to believe that KESC is going to end the load-shedding.
The formula which is presented by KESC is linked with the Government's support.
It is unfortunate that any decision taken by any government is reversed by the next incoming government due to one simple reason that the decision was taken by the past government.
It seems to be that people sitting at the helm of affairs are nursery class students without having a teacher present in the class.
What happens is that one child walk towards the blackboard and make a picture and then come back and sit on his desk.
The other child also goes towards the blackboard and rub the picture with the duster and make his choice of picture.
When the third child goes, he also rub the picture of the made by the second student and then make of his choice of picture.
And then the entire students do the same drill.
This is how the tax payers money is wasted by the successive governments.
What a pity.
Let's hope they mean what they say!
Accountability process for theft of utility services should be law. Today utilities are commercial entity, and work only for profit. Gone are the days when utility was subsidised. When electric is used for KWSB which cannot recover its charges from consumer. The shareholders of KESC will ask to discontinue the electricity. It is well noticed KESC considered immunity from load management to paying consumer areas. But to reduce electric charges tariff every consumer should conserve energy, and pay for it. Use of solar electricity in several location is quite feasible. Thar Coal is an asset. It should be used to the max to benefit the masses.
Only if it were under govt. such measures could have surely ended load-sheding in Karachi. But then one also has to remember what came out of PEPCO which was dissolved last year.
Rite another plan to dry us out of CASH