KESC to disconnect KWSB electricity

Karachi Electric Supply Corporation launches ‘disconnection drive’ on facilities of Karachi Water and Sewerage Board.

KARACHI: The Karachi Electric Supply Corporation (KESC) launched a ‘disconnection drive’ on offices and facilities of the Karachi Water and Sewerage Board (KWSB) on Friday night.

“The water board was asked for payment against its outstanding dues on October 26,” explained KESC Spokesperson Amir Abbasi. “Although a cheque worth Rs50 million was received, it bounced when it was submitted to the bank,” he asserted.

“This is not the first time that a cheque issued by KWSB has bounced,” contended Abbasi. He said that the electricity provider would start disconnecting electricity lines of KWSB facilities, starting with the company’s headquarters.

KWSB officials confirmed that the issued cheque did not clear but insisted that a ‘technical problem’ was to blame.

Meanwhile, inter-corporate debt has peaked once again and various stakeholders have started blaming each other for the persisting gas and electricity shortfall.

Allegations

“Sui Southern Gas Company (SSGC) has cut down gas supply until their outstanding dues are paid,” claimed the KESC spokesperson. But SSGC refused this allegation, saying: “Supply has been reduced because the temporary closure of Zamzama gas field has severely decreased the available supply to SSGC.”

Pakistan State Oil has also warned that it will not import more furnace oil till its outstanding dues are at least partially cleared. Historically, demand for furnace oil increases in the winter because the supply of gas is limited.

Analysts warn that higher dependence on furnace oil to meet the nation’s energy needs could be risky given the worsening inter-corporate debt crisis.

Published in The Express Tribune, October 30^th, 2010.