KARACHI, May 1: Dissatisfied with the poor performance of the Karachi Electric Supply Corporation, industrial consumers are opting for self-generation of power in increasing numbers.

Top-ranking officials in the power utility told Dawn on Thursday that the magnitude of self-generation of power had risen to 400 megawatts.

“The demand for electrical power in the city is 1,900 megawatts. The generating capacity of the power utility is around 1,200 megawatts. There is a gap of 700 megawatts which is met by independent power producers and by the Wapda.”

Industrial consumers contend that there are two reasons why they choose to invest in a self-generation plant rather depending upon the KESC.

“First, over the years the transmission and distribution system of the power utility has become so erratic that it fails to provide industrial consumers with an interrupted supply of electricity. Working to strict deadlines, industrial consumers cannot allow power breakdowns to hamper their work. Second, in view of the ever-rising power tariff, it makes economical sense to invest in a self-generation plant.”

Senior officials of the Sui Southern Gas Company told Dawn on Thursday that at least 110 industrial consumers in the city were already employing dual-fired power plants run on natural gas after procuring no-objection certificates from the gas company.

The volume of natural gas being consumed by industrial consumers for indigenous generation of electricity is more than 60 million cubic feet per day, according to the SSGC officials.

“More than 50 industrial consumers have also applied for no- objection certificates so that they can switch over to natural gas for local generation of power. At least 10 such applicants will soon get natural connection. The applications of the remaining 40 are being processed,” they explained.

Well-placed sources in the KESC confirmed this trend. They said that most industrial consumers, especially in the textile sector, had refused to apply for more load when they had expanded their business. Instead, they had purchased dual-fired power plants to be run on less expensive and readily available natural gas.

“A large number of industrial consumers have told us that because of our irrational tariff, they prefer electricity generated by private plants to KESC power, but our highups seem to be least bothered about the views of the industrial consumers.”

The SSGC officials explained that the process of conversion to electricity generation through gas took a couple of months as the industrial consumers had to make arrangements for power generating plants.

Speaking to Dawn, industrialists enumerated the factors that compelled them to switch over to electricity generation by means of local power generators.

“When an industrial consumer seeks to apply for more load, he finds that the KESC tariff structure for addition of load is completely irrational. If on the other hand, the industrial consumers purchased a dual-fired power plant to be run on natural gas, it would not only save him 25 per cent of the amount he would have spent on KESC electricity, but would also add to his assets.”