ISLAMABAD: The war of accusations intensified between the two Karachi-based public utilities — privatised power firm K-Electric (KE) and state-owned Sui Southern Gas Company (SSGC) — as consumers continued to suffer extended power outages in hot and humid weather.

Both firms are publicly listed companies on the country’s stock exchange and yet appeared questioning each others accounting standards apart from hurling accusations against each other for gas shortfall and resultant power crisis in city of more than 20 million people.

The blame-game appeared to have started after power regulator — National Electric Power Regulatory Authority (Nepra) — blamed KE for not utilising its full generation capacity and at the same time asked the government to increase gas supply to KE for higher power generation to ease public sufferings.

In statement on Wednesday, KE said the Nepra’s suggestion for higher gas supply supported the power utility’s stance that 500 megawatts of energy shortage was due to gas constraints but at the same time played down for technical reasons its inability to utilise spare generation capacity highlighted by the regulator.

The gas utility — SSGC — on the other hand claimed the Nepra’s findings “truly justify SSGC’s position” that KE used gas issue as a pretext for additional loadshedding instead of setting its priorities right.

It accused the KE of neither clearing its outstanding dues worth Rs80 billion, or depositing Rs6bn security deposit as committed at a meeting under Sindh Chief Minister Murad Ali Shah, nor entering into dialogue for signing a gas sales agreement (GSA)— a prerequisite for gas sales to any consumer.

The SSGC reiterated that gas shortage was not a surprise phenomenon and had repeatedly been brought to the notice of KE management to sign gas sales agreement because the original four-decade old agreement covered only 10 mmcfd while the actual gas supply is eight times higher. It said the gas company was following the government’s gas load management plan that gave priority to domestic consumers who have been increasing over the past 40 years.

The gas company said its numerous attempts to bring KE to the table to sign a fresh GSA had failed as the KE avoided negotiations and defaulted on its payments while SSGC did not stop gas supplies to a defaulting customer “just for the people of Karachi.” It said the KE also did not honour its commitment made with Sindh’s chief minister to appoint one of the top independent chartered accountancy firms to reviewing and analysing financial statements and other relevant records of SSGC and KE from 2004-05 to date to determine overdues.

“Is SSGC unjustified in demanding overdues when it has to pay off the financial institutions, banks and of course the exploration and production companies it purchases gas from?,” asked the SSGC.

KE, on the other hand, insisted its generation capacity continued impaired by reduced gas supply by SSGC. It said the better gas supply could have covered the shortcomings at KE plants highlighted by the regulator, adding that the alternate fuel utilisation involved lengthy technical parameters and immediate solution was higher gas supply.

Published in Dawn, April 19th, 2018