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Stand up and fight
By Ardeshir Cowasjee
Sunday, 21 Jun, 2009
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Cars are seen on a road during a city wide power outage in Karachi. —Reuters
Cars are seen on a road during a city wide power outage in Karachi. —Reuters
WE are told that the approximate 20-hour blackout gifted to Karachi on June 17-18 by the Karachi Electric Supply Company originated in a fault in the 500KV transmission line, allegedly caused by a storm, knocking out the Jamshoro and Hub power stations.

The entire KESC generation system (including two IPPs) cascaded out in sympathy. Had the protective relaying of the KESC system been operating properly, some 30 per cent of the load would have tripped off automatically and the rest of the network would have continued to operate. But KESC, for its own reasons, rendered itself helpless.

It should have taken at most four to six hours for the utility to restore power. That it did not tells us that much is wrong with the design, operation and maintenance of a utility that is there to cater to over 18 million consumers.

For the first 50 years of our country’s existence, the ordinary citizen opened his newspaper in the morning and every now and then discovered that the government had increased the price of a unit of electricity by another 20 or 30 paisa. There was not much he could do but pay up.

Then in 1997, the National Electric Power Regulatory Act was promulgated by which the entire electricity industry (Wapda and KESC) was to be divided up into smaller units comprising many generation, transmission and distribution companies (except for KESC which remained a vertically integrated utility), and would be put up for sale to the private sector. Since these mini-utilities would be monopolistic in nature, the National Electric Power Regulatory Authority (Nepra) would act as a quasi-judicial regulator, and, among other things, would (a) grant licences for generation, transmission and distribution of electric power; (b) prescribe procedures and standards for investment programmes by these utility companies; (c) prescribe and enforce performance standards; (d) determine tariff, rates, charges and other terms and conditions for the supply of electric power services and recommend to the GoP for notification; (e) review the organisational affairs of utility companies to avoid any adverse effect on the operation of electric power services and for continuous and efficient supply of such services.

The newly established utilities began to submit to Nepra applications for licences and regular petitions for tariff increases, which in turn inserted highly noticeable notices in the press inviting consumers and interested parties to intervene in the process and give their comments/objections. The response from the public was apathetic. Over the years, when individuals have been asked why they did not take advantage of their civic right to participate and protest, most expressed ignorance of the existence of the procedure, never having seen the prominent Nepra notices! A few who had read the invitations, stated cynically 'This is but a formality; who will listen to us?' (If you do not protest at the correct forum, how can anyone listen to you?)

Aside from abdicating their duty to participate in Nepra hearings, citizens devoid of civic sense rob — power is unlawfully extracted by rich and poor, by industrialists and shopkeepers, through open kundas and meter-tampering. How can any business or industry survive with a 20 to 25 per cent loss-through-theft figure? Political parties and the business/industrial community of Karachi, whose members and jiyalas are the main culprits, douse their heads in the sand and encourage the hemorrhage of electricity. It is noteworthy that even the army, which ran KESC for many years before privatisation, was unable to stem the so-called non-technical losses.

Those who consume electricity without paying for it waste and over-utilise: lights, fans, air-conditioners and equipment are misused extensively. If all who rob, those devoid of civic sense, were forced to pay for the energy they consume the demand on the electrical system would be radically reduced and more would be available for the paying consumer. The thieves steal from honest, paying customers.

Recently, the KESC submitted a petition for a 10 per cent increase in tariff (which is apart from the 17 per cent reduction in subsidy that the GoP, under IMF pressure, is considering). The last base tariff determination approved by Nepra in 2002 was to be valid for seven years after privatisation, a factor required to provide some stability to prospective investors. The only increases allowed were pass-through items based on the quarterly changes in the cost of fuel and purchased energy. All ramifications of this tariff and complete facts about the KESC were made known to the investors during the pre-bid due diligence stage. Consequently, the present owners of KESC must make the best of this tariff up to 2012 (KESC was privatised in 2005).

The entire privatisation issue is clouded by a lack of transparency. Despite demands for publication of the GoP agreement with the new owners, including details of the investments that are to be made by them, no information is forthcoming. There is inadequate oversight by the GoP or Nepra of the commitments, procedures and standards for investment programmes. The condition of the utility over the summer has been deteriorating, despite avowals of an azm (determination) by the head honchos of the professional management. Why is the regulator, Nepra, not fulfilling its mandate to safeguard the interests of Karachi’s consumers?

The citizens must wake up. The NGO Shehri has widely disseminated an appeal: 'KESC has filed a petition with Nepra (see http://www.nepra.org.pk/petitions.htm) to increase the electricity tariff. The details of the existing tariff and the determination of base tariff in 2002 can be obtained from http://www.nepra.org.pk/kesc.htm.'

The residents of Karachi must participate in this determination. There is no point in merely complaining that the cost of electricity is too high, and that the quality of supply is lamentable, that we suffer on a daily basis. The citizens must acquaint themselves with the details of the problem, and organise groups (industrial, or commercial, or institutional, or residential consumers) to fight for their rights, or even participate as an individual consumer.The first step is to petition Nepra and insist that the hearing be held in Karachi, not in Islamabad. Then attend the hearing(s) after having studied the documents and prepared some cogent arguments.

This is our city and our utility company. Undeniably we are a part of the process; we have rights that must be heard before the right forum at the right time.

My knowledge of electrical technology is limited to the fact that it works if you plug it in. My reliance has been on the expertise of electrical engineer Roland deSouza who has marshalled the bulk of the information given in this column. He can be contacted for further information at rvazz1@gmail.com

arfc@cyber.net.pk
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