July 24, 2008	Thursday	Rajab 20, 1429

ISLAMABAD, July 23: The National Electric Power Regulatory Authority (Nepra) has decided to scrutinise the working of the Karachi Electric Supply Company, including its investment plans and system improvement programmes.

It said on Wednesday that it had constituted a committee for the purpose and to consider measures for improvements in KESC services as part of its plan to tighten regulatory control.

In this context, Nepra has asked the power utility to submit its power acquisitions and investment programmes.

Nepra said it was mandated to ensure improvement and impose fines for non-compliance, but as a first step it was placing emphasis on compliance of legal requirements.

On Tuesday, the ministry of water and power criticised KESC’s performance and also constituted a committee to look into its affairs.

Nepra said it was aware that the KESC was an integrated utility, supplying power under a monopoly licence to service an area of about 6,000 square kilometres in and around Karachi. But the city was plagued with power outages resulting in huge losses to the national exchequer and end-users.

This situation would impact future privatisation and the roadmap of private power regulated by Nepra.

Nepra, therefore, directed the KESC to comply with Sections 21(h) and 32 of the Nepra Act and submit power acquisition and investment programmes so that it could be placed before consumers. The act requires the KESC to provide details of its generation availability and investment plans for prior approval.