KARACHI: A change is actually visible at the KESC head office. For the first time the head of the organization is boldly condemning almost every aspect of its operational procedures. Whereas the previous Managing Director, Brigadier Sadozai had stolidly maintained almost zero acceptance for and responsibility of the organization’s working inefficiency, Mr Frank Scherschmidt, its present Chief Executive Officer, unabashedly agrees with all the criticism that is hurled at the organization’s faulty functionings.

And strange as the human psyche is, just this admittance of failings inadvertently enforces the belief that a substantial change for the better is perhaps in sight. But as long-suffering KESC consumers we are highly skeptical regarding any improvement in Karachi’s electricity problems. However, the rush of activity taking place at its head office indicates that some serious overhauling measures are taking place. Just the fact that its staff is busy these days preparing for the summer months when the electricity supply inevitably collapses, gives an indication that the summer of 2006 will hopefully have fewer ‘dark nights’.

As opposed to fallacious claims of there being, “no corruption at all,” in KESC, Mr Scherschmidt is pragmatically restructuring the pay scales to eliminate any need for corruption. He says, “If an employee is being paid Rs75/- as daily wages, he will obviously turn towards extra means of earning. We are eliminating the culture of overtime too as that entire concept breeds a dysfunctional organization and are also adding incentives for the employee in case of extraordinary performance.”

Brought in especially to revamp the malfunctioning organization when the corporation was bought by the Al-Jumaih group, Mr Frank Scherschmidt has a deadline of two years in which to turn the organization into a profitable venture. As a short-term goal, he promises a visible change in the next three months and a definite difference in its efficiency (or rather inefficiency) this summer. Looking into all areas simultaneously, the CEO has begun overhaul in the infrastructure of power transmission, the customer services department, employees’ payment structure as well as in the existing tariff rate system. He says, “there was absolutely no concept of giving any benefit to the consumer, who is the most important stakeholder in a utility service organization. The tariff rates are so foolishly planned that there is just no provision made for large scale consumers and small time consumers. There should be different tariff packages for retired citizens, family people, single persons and so on. And most importantly, consumer problems should be dealt with immediately. Hence, our prime focus is on customer service where the people will definitely see our trained staff in customer dealing making a difference very soon.”

Coming from a corporate background, Mr Scherschmidt is working on creating a strong corporate identity where consumers have all the facilities they require. Perhaps the largest investment being done is in computerizing its entire network which will enable the head-office to monitor power failures even before a consumer lodges a complaint. The computer programme called Solution Application and Product data processing (SAP) will also enable the head office to monitor meter tampering and power theft through the ‘kundas’ . But whether the incorrigible locals will refrain from theft despite the curbs, still remains to be seen.

In fact, a lot remains to be seen regarding KESC’s operating efficiency. A utility whose previous statistics record 24 hours service breakdowns and seven-hour power outages and where the management has shown zero concern for the daily sufferings of the tormented millions, it is too optimistic to even hope for a sea change. After all, even the dynamic specialist brought in for the change will be dealing with those very locals who are seeped in a culture of inefficiency. But the stoic German head of the company says he has dealt with such snags before. “When I came in last month, this company was like a rusty, leaking ship. But we have already begun plugging the leaks and you will see a change soon.”

The acute power shortage in Karachi is because of power generation problems which can only be overcome by putting up more power stations in Karachi which is a lengthy process requiring extensive documentation and a time frame of three to five years. However the present management claims that work has already started for increasing the power generation and the revamp of transmission lines. KESC is now buying about 232 MW power from Independent Power Plants (IPPs) daily besides the 550 obtained from WAPDA. Since negotiations with more IPPs are taking place the added summer load is also being proactively looked into. At this point one simply wonders why the previous army management (otherwise so systematic in its ‘operations’) couldn’t take the same measures. But its spokesperson defends the previous management by saying that shortage of funds was the main hurdle that impeded efficient running, whereas the new management has an estimated budget of $400-800 million earmarked for immediate investment. He also adds that if it weren’t for the army’s stepping in, the privatization would never have taken place and the utility as well as its customers would have had to deal with a severe catastrophe.

The new management’s operation partners – Siemens – has also brought in experts from Poland, Germany and elsewhere to train the entire staff in all areas. The CEO also declares that no retrenchment is taking place as the company is already short of staff. The plan is to smooth out the snags first and then hire new staff and perhaps let those leave whose contracts expire.

With the immediate step being total computerization of its power networking, the corporation will automatically be geared towards a more efficient apparatus to handle power breakdowns. But the one area which Mr Scherschmidt is unsure about is the affluent citizens’ attitude towards power consumption. “In Defence and Clifton we have recorded nearly 20 MW consumption for one house. This is quite scandalous and these people must be made to realize that electricity conservation is not just crucial for this city but it is a global need.” But will the talented Mr Frank Scherschmidt be able to pass this educated message to Karachi’s elite? How will he address that decadent strata of our society where rule of the law has no power and where opulence and luxury is a social need, the suffering millions be damned.