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Karachi Electricity Supply Company Asks Raza Rabbani to Play Due Role for Providing Relief to Power Consumers

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Karachi: Karachi Electric Supply Company while expressing great dismay over the uncalled for and baseless allegations levelled by Senator Raza Rabbani against the power utility, asked the leader to provide relief to the power consumers of Karachi by playing his due role in payment of billion of rupees payable by the government to KESC, and ensure regular supply of adequate natural gas to its generation plants.

Referring to Mr. Rabbani’s recent biased and incorrect statement, KESC said that it was actually a case of government’s failure to implement its contractual and committed obligations towards the power utility. Till December last year (2011), the Federal and Provincial Government owed KESC a collosal amount of over Rs. 56 billion under various heads, a large percentage of which was due to unpaid power bills.

On the other hand, at the outset of present KESC management’s taking control, the government had committed regular and stable supply of 276 MMCFD of natural gas to run the utility’s old power plants. Another 130 MMCFD had been committed for the new BQPS-II. However, for the past over two years, this commitment, though verified and repeatedly approved, was never kept.

Non-payment of such huge outstanding amounts and short supply of natural gas on the part of government had been playing havoc to the power generation and supply system for Karachi consumers. The utility neither has enough and endless cash flow to buy furnace oil through upfront cash payment for power generation, nor is it an ideal position to sustain an ever growing circular debt.

Still despite all these obstacles and less than ideal operating conditions, it is a fact known to everyone across the country that KESC has been managing markedly better, the power supply situation in Karachi vis a vis the situation being faced in other parts of the country.

KESC also expressed great surprise and disappointment over Mr. Rabbani’s poor knowledge of the recent investment into KESC. The single largest investment of 450 million dollars had been made into the new 560-MWs power station at Bin Qasim, while enormous spending had been made for improvement of existing power stations, transmission system, grid stations, distribution network and public complaint redress.

The Senator also appeared unaware of the fact that KESC had acquired adequate power generation capacity through this unprecedented investment but most of new plants had been standing idle because of shortfall of natural gas.

The Senator, KESC said, needed to realize his actual responsibility. Instead of issuing sensational and unrealistic statements and blaming it on KESC. He could better remove obstacles in the way of government payables on the one hand and regular, requisite gas supply to the utility on the other, which would minimize KESC’s dependence on the four times expensive furnace oil, thereby bringing the current load shedding duration to a bar minimum.

For more information, contact:
Adil Murtaza
Assistant Manager, Media and PR
Karachi Electric Supply Company Limited (KESC)
2nd Floor, State Life Building No 11, Abdullah Haroon Road, Saddar, Karachi
Tel: +9221 9920 7163
Cell: +92346 822 3641


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