Furnace oil: KESC to pass on impact of price rise

KESC expressed concern over Rs4,400 per ton increase in furnace oil prices for second fortnight of the current month

KARACHI: The Karachi Electric Supply Company (KESC) has expressed concern over the Rs4,400 per ton increase in furnace oil prices for the second fortnight of the current month, as intimated by PSO. It says, in a statement issued here on Thursday, that the price hike will prove detrimental to the interests of both the power utility and its customers. KESC has stated that it is not in favour of any increase in the power tariff; but since the end-user tariff is a function of the primary fuel input cost, the hike will eventually be passed on to the consumers. KESC says that spiralling increases in power tariffs not only creates undue burden on electricity consumers, but also have an adverse impact on bill recovery and collections for the utility. Increase in furnace oil price is a core factor that will impact the per unit price of electricity, affect customers’ budget, as well as KESC’s financial load, the distribution company has said.

Published in The Express Tribune, August 17^th, 2012.