Not a day has passed during the last four years when newspapers have not carried a story of sufferings of Karachi’s citizens at the hands of the KESC management. Power outage, low voltage and excessive billings have become a routine and a way of management with the KESC.

The KESC’s problem started in 1980’s when this relatively efficient organization’s control was handed over to Wapda— an inefficient and corrupt organization. During the Wapda management, a dark era of electricity pilferage and breakdowns increased rapidly. In the name of economy, routine maintenance and system improvement was abandoned. During this period, Wapda used Karachi’s electricity generation capacity for its own system and paid prices lower than the generating cost. This practice deprived the KESC of its revenue and the citizens their electricity.

The second and the most deplorable phase of the KESC started when about four years ago again in the name of efficiency, the KESC’s management was turned over to men in uniform.

Lines losses, which were around 32 per cent, have gone over 41 per cent. This tells us that the KESC system has further deteriorated and any improvement, which was promised, has not come around. The KESC says that it has to some extent controlled the electricity theft. In fact, if this statement is correct control of theft to some extent, despite the power of the gun is a clear proof that the management is not doing what it was entrusted to do. Or the line losses further increased which are being covered up as pilferage.

A KESC bill consists of many items. Two main charges are, basic price and fuel surcharge. Fuel surcharge is calculated on the basis of fuel cost consumed for generation, after excluding the cost of fuel already incorporated in the basic unit price of the electricity. Between 1998 and early 02 the KESC was completely dependent on furnace oil for its fuel requirement.

From early 02, SGSC started to supply Sui gas to the KESC, which is a far cheaper fuel than the furnace oil. At the present the KESC meets 80 per cent of its fuel requirement from Sui gas supply. In June 1998 furnace oil price was Rs5,500 per ton on May 2003 furnace oil price was Rs11,173 per ton. Fuel surcharge levied by the KESC in June 1998 was Rs0.75 per unit and in April 2003 the fuel surcharge was 2.50 per unit. This reveals that though the price of furnace oil during this period has only doubled but the KESC is charging more than three times on this account. If cost of cheaper gas is taken into account the fuel surcharge should not be more than Rs1.00 per unit. Considering that the KESC generates 1400 mega watt electricity per day, it is over charging its customers 18 million rupees per day or over Rs 6.5 billion per year. During this period the KESC increased its basic energy charges by Rs0.60 per unit which further generated Rs2.62 billion per annum to the KESC.

Leaving aside the amount of fuel surcharge and availability of cheaper fuel, the Sui gas, for which the KESC may have some explanation, the KESC during 1998-03 generated additional revenue of Rs15 billion which includes Rs1.2 billion recoveries from customers. During the same period, the KESC carried out survey of consumers and billed them Rs6,500 per KW for any additional load they were using. We do not know the amounts but an intelligent estimate is that on this account the KESC collected another several billions in the name of system development.

Main causes for line losses are undersized overhead conductors, loose joints, old and brittle conductors, underrated transformers and underrated underground cables. Since 1980 and during the last four years, the KESC has not paid any attention for wresting the line losses. Old conductors are dangling from poles, loose connections are sparking, transformers are overheated and at time with unbearable load they burn out. Over heated conductors snap, and because of absence of normal safety features prescribe by electricity act, live snapped wires take away precious human life. KESC’S antiquated and inefficient system not only cost it in line losses but also results in extra cost for frequent repairs and cost of materials. All these costs are passed over to the helpless consumers.

The army was brought in the KESC to eliminate theft of electricity but the menace of theft through Kunda system is still rampant. It is said that any mass drive against this menace may result in law and order situation. If the KESC were to give regular official connection to Kunda users and install energy meters and recover the cost say in three years, consumers will happily embrace this facility and the KESC should be able to recover the cost of connection and the energy meter within six months. From then on the billing revenue shall be net gain to the KESC.

The KESC claims that its total line losses are 40 per cent as against international standard of 7-10 per cent. The KESC system at the present requires 1900 MW electricity. About 1400 MW is generated by the KESC. About 500 MW is procured from Wapda. If the line losses are brought down to the higher limit of international standard of 10 percent, the KESC will save about 570 MW per day which in retail value translates into 12.5 billion rupees per annum. This amount may be even higher as with the saving of 570 MW, the KESC will not have to resort to buying expensive electricity from WAPDA. Power supplied to the KESC by Wapda from Hubco is through Jamshoro link, which incurs 32 MW line loss because of the long distance. If arrangement is made for a short direct link of HUBCO with the KESC’s system it can save cost of at least 25 MW power.

The KESC have started a very unusual practice of fleecing its customers by asking them to bear the cost of material and equipment for the breakdown of its overloaded system. As stated above, the KESC levied billion of rupees on its consumers on the pretext of system development but no where a penny was spent for improvement of the system - such practice can only be called highway robbery.

What the KESC is required to do is to give full account of fuel surcharge it is levying on the customers. Embark on adding additional feeders. Draw out a plan for the replacement of antiquated conductors. Strengthen the present overloaded conductors and PMTs. These are not tall targets, they can be achieved in a short span of one year and partial cost of such a plan can be recovered by selling the scrap conductors and re-use of useful conductors and PMTs. The KESC should also immediately undertake connection of HUBCO power direct to its system. If the KESC carries out such a plan it can save upto Rs15 billion per annum which will turn it into a profitable organization and it will enable it to reduce the exorbitant power cost, it is presently charging its customers.

It is evident that past and the present management of the KESC have been groping in the dark, they never had the vision to come up with a solution and take measures which would make the KESC an organisation with any semblance of efficiency. It will be in the fitness of things that a high powered commission consisting of experts, NGOS, auditors of international repute, public representatives be appointed to fix responsibilities of failure of the past and present management and spell out ways and means and priorities for putting the KESC on right path.

What the KESC, Wapda, the KWSB, the KDA and other organizations need are an informed management not a uniformed management, a consumer friendly management not an arrogant and coercive management, not an inefficient and non-professional management. It is high time that the present management is packed off to the barracks where it belongs.