The CNG problem: KESC’s view

Published Dec 16, 2012 12:03am

THIS is apropos of the letter ‘The CNG problem’(Dec 6) by Amanullah Turk. I would like to share some key elements for the consideration of the writer. Being a scarce natural resource, gas needs to be rationalised based on optimisation of end-user benefits.

As for the current payables to the gas provider, the SSGC, it is in fact the government that has to pay Rs20 billion directly to the SSGC on account of the unpaid and accumulated power bills of the KWSB, which the water board has not been servicing since time in history.

The KESC’s emphasis on adequate gas supply to its generation turbines commensurate with their requirements isin effect beneficial to the end-consumers, since furnace oil is approximately 350 per cent more expensive to generate electricity, when compared to natural gas.

Because of the consistently reducing gas supply to the KESC during the past three years, the power utility has had to purchase additional furnace oil worth Rs60 billion, which has adversely affected the power tariff for consumers.

With these facts in place, it is hoped that the writer can now better distinguish the ground realities reference to power generation.

AMINUR RAHMAN General Manger Media Engagement, KESC Karachi


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