February 03, 2009	Tuesday	Safar 07, 1430

KARACHI, Feb 2: While the Abraj-led management of the Karachi Electric Supply Company has failed to meet the city’s electricity demand due to the utility’s shrinking generation capacity, it has created an ‘Umeed Zone’, comprising Defence and Clifton, to maximise its revenue.

Analysts say the move is reflective of the unrealistic approach of the management as its promises of increasing generation and reducing line losses have not been fulfilled.

On Monday, the KESC fell short of about 450 megawatts (MW) in meeting the local electricity demand of about 2,000MW, yet it was hoping a windfall in its profit earning by creating the so-called ‘Umeed Zone’ to maximise its revenue by cutting on fuel cost and sending enhanced utility bills, said sources privy to the workings of the utility.

According to sources, the Bin Qasim power plant was generating about 650MW out of a total output of the KESC’s 900MW. It was getting around 400MW from the Water and Power Development Authority during the day. But KESC spokesperson Ayesha Eirabe claimed that the shortfall was to the tune of 160MW and that the demand was around 1,650MW.

According to sources, the KESC management in its circular pertaining to internal job posting (Jan 5, 2009) maintained that one of the prime objectives of the Umeed Zone was to “improve the quality of service to customers through quick and effective response to requests and complaints, gain a high-level of acceptance and approval of KESC performance by customers in the UZ”.

The man who will head the Umeed Zone is required to assure that “revenue produced each month from the current sales and collections within the UZ exceed the total operating costs (i.e. power delivered, payroll, transportation, and other operating expenses) by the percentage specified in the annual operating budget”.

But analysts said it was not clear how the utility could expect improvement in revenue because it had miserably failed to ensure uninterrupted power delivery to its customers. Insiders said it would be done through targeted enhanced billing in the country’s most affluent locality.

The sources said there was more emphasis on bill production and delivery on schedule and utilisation of manpower to maximise the number of delinquent disconnections performed each month, and reconnections were performed in accordance with the standards.

Many consumers in the so-called Umeed Zone complain of prolonged power outages, almost every day, and apprehend excessive billing by the KESC to enhance its profitability without proper power supply.