Going nowhere: Civic agency, power utility at loggerheads

Negotiations hit deadlock after CDA requests rationalisation of 75% of dues.


Danish Hussain May 26, 2014
Prior to the suspension, disconnection notices were served on the authority, but it refused to clear the balance, terming it “exaggerated” and calculated on “false estimates”. PHOTO: FILE

ISLAMABAD:


The Capital Development Authority (CDA) and the Islamabad Electric Supply Company (Iesco) are deadlocked in negotiations over rationalising of outstanding electricity dues that the former owes the latter.


It has been over a month since power supply for the CDA headquarters building was suspended by Iesco after the outstanding dues crossed a record Rs2 billion.

Prior to the suspension, disconnection notices were served on the authority, but it refused to clear the balance, terming it “exaggerated” and calculated on “false estimates”.

“A committee with representation from the CDA, Iesco and the Federal Investigation Agency (FIA) was formed to hash out the issue, but it is now deadlocked,” confirmed a CDA board member.



He said that Iesco officials initially agreed to rationalise up to 50 per cent of the outstanding amount, but the CDA wanted 75 per cent rationalised.

The officer said Iesco officials then refused to negotiate further. “During the last two meetings, none of the Iesco officials attended,” the official said.

“When we say up to 75 per cent reduction, we have reasons for that,” he said, explaining that in the absence of any monitoring or calculation system, Iesco sends the CDA inflated electricity bills based on assumptions and estimates.

“In residential sectors, highways and freeways, all the streetlights are not lit, but we are charged for each and every electricity pole installed in CDA limits,” the official said. He said a significant part of the outstanding dues are under the head of streetlights, which he referred to as “imaginary billing”.

Generator develops a fault

Since April 25, the civic agency’s power supply has been left up to a single 550KVA generator.  On Monday, one of the two cables supplying electricity to block-2 of the building developed a fault, apparently due to excessive use. The generator is on for up to 12-hours-a-day. This resulted in suspension of electricity supply to the whole block.



“It is supposed to be a backup, not a permanent source of electricity,” said a CDA generator operator, who declined to be named. He said it is technically unfeasible to keep using a backup power unit as a permanent source for so long.

The operator said the high ups have to decide whether to replace the defective cable with a heavy duty cable or disconnect power supply for ACs installed in the block to reduce the load on the generator.

He said it was not possible to disconnect ACs in the executive block as the offices of the chairman and board members are located there. Incidentally, the generator consumes an average of 650 litres of diesel per day, costing about Rs75,000.

Similarly, the electricity needs of offices at the old navel complex are met with a 350KVA generator. During a routine day, this generator consumes 480 litres of diesel.

When approached for comment, Iesco Additional Chief Engineer Riaz Bokhari said he was busy in a meeting but assured he would call back with Iesco’s version on the issue. However, he did not call back and refused to attend later phone calls.

Published in The Express Tribune, May 27th, 2014.

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