Fed up of unpaid bills, KESC outsources Gadap

Utility hands over electricity distribution, bill collection responsibility to private contractor.

KARACHI:

Since the city responds instantly to calls made by political parties, the electric supply company decided to use this to its advantage.

Earlier this year, the Karachi Electric Supply Company (KESC) invited private parties to take up the responsibility of running its system in areas where it faced difficulty in collecting bills and help stop power theft. In the first phase of this project, Gadap and Orangi towns have been franchised.

Gadap Town - where different areas are dominated by various political parties - was always a problem for the power utility. Now, its electricity distribution and bill collection has been outsourced to a private contractor, who has the political backing to carry out the task more efficiently than the company.



When you walk into Sherwani Enterprises Private Limited CEO Hammad Khan Sherwani’s office, set up on the first floor of a small bungalow in Gulshan-e-Iqbal, you can tell that he is no ordinary man. The entrance is manned by several security guards and the staircase is lined with posters of political leaders.

“My house has been attacked by armed men since I took up the job of running the system,” said KESC’s franchisee. “People think they can use electricity for free, as if it’s their right.”

KESC’s own workers were scared to enter Gadap Town’s notorious neighbourhoods of alAsif Square, Gulzar-e-Hijri, Sohrab Goth and several katchi abadis - all backed by different political parties. It seems that the utility has found the bravest man for the job now. “I am not scared of hooligans or corrupt officials,” boasted Sherwani, who also works as Pakistan Peoples Party’s (PPP) vice president for district West. “I have always followed the footsteps of Shaheed Benazir Bhutto. There was a time when I worked as her security guard,” he explained.

Meanwhile, KESC spokesperson Aminur Rehman insisted the decision to join hands with private parties was based on a thorough analysis and was carried out in areas where power theft had been a chronic problem.

“We didn’t give any consideration to the political background of these people,” he said, adding that several applicants responded to the tender issued by the company and the decision was based on merit.



Sherwani has signed a 10-year contract with the KESC against an undisclosed bank guarantee and a profit-sharing agreement. He also supervises KESC’s staff in that area.

“Soon after I took charge on August 1, I found out that not all the consumers steal,” he recalled. There were several mafias, aided by KESC workers, who were operating in the area, he said. Several groups of influential residents were actually collecting bills from consumers but that money never made it to the company’s accounts, he explained.

Fixing the system, Sherwani fired those KESC employees who were involved in dirty dealings. Other residents, who used to scare away KESC bill collectors, are now intimidated by Sherwani and his men.

“One has to become an animal to fight an animal,” he said, explaining his strategy. He has formed committees in every neighbourhood and hired residents to address consumers’ complaints. “This local presence is helping me keep track of what is happening on the ground.” While it is too early for Sherwani to determine how successful this venture is, he hoped that it can bring a change in the power sector of the country.

KESC is also giving the model some time. “We don’t want to jump to conclusions by saying how successful it has been,” said Rehman. He agreed that people will benefit because the duration of load shedding in their neighbourhood will decrease once they start paying the bills.

KESC also plans to outsource Baldia, Lyari, Liaquatabad, Nazimabad, Surjani, Malir, Landhi, Korangi and another part of Orangi.

Published in The Express Tribune, December 18^th, 2012.