KARACHI, Aug 6: While Karachiites continue to suffer power outages of more than two hours at least thrice a day due to a shortfall of 250 megawatts, there are apprehensions that Karachi might soon plunge into darkness due to burning out of most of the 112 transformers installed in the Karachi Electric Supply Company’s 46 grid stations which are operating at capacity much higher than the specified international safety standards.
Sources said 31 transformers at some grid stations were operating at 100 per cent capacity against the international standard of 70 per cent. Twenty-one transformers were operating at 90 per cent capacity while 25 were functioning at 80 per cent. Only 13 transformers were operating at 70 per cent. These transformers are of 30 to 40 MVA capacities.
Because of operating at much higher level of international safety standards, these transformers, insiders fear, may burn out and result in a total collapse of the KESC transmission and distribution system, as was witnessed on the day the city received the first monsoon showers, causing widespread losses.
Owing to this critical situation with regard to the KESC assets and liquidity issue, the Dubai-based Al Abaraj is dragging its feet on taking over the utility unless those contentious issues are resolved, the sources said.
There are reports that Al Abaraj is not happy about the continuing dispute over outstanding dues between the Water and Power Development Authority and the KESC. The new owners, to whom Aljomaih group has sold the controlling shares of the KESC, and thus the management of the KESC, are insisting that this matter be settled before they formally take over.
While WAPDA is insisting that the KESC owes it about 40 billion rupees, the KESC is maintaining that the outstanding amount is Rs13 billion. The matter has remained unresolved because WAPDA is maintaining that its cost of fuel has swelled considerably for supplying power to the KESC. The KESC, on the other hand, has maintained that WAPDA should charge the cost of hydel energy.
The clash of interests of different groups within the utility has also marred the functioning of the KESC owing to which there have been problems of generation, transmission and distribution.
In view of the deteriorating situation of the KESC, there are fears that the government might appoint a liquidator rather than an administrator. Such a move will save the investors but might deprive workers of their provident fund, already mortgaged by the privatised management, and other dues.
The general secretary of the KESC Shareholders’ Association, Chaudhry Mazhar, has expressed concern over the situation and urged the government to take steps to protect the workers’ and the common man’s interests.
He said that if a liquidator was appointed in the present situation, it would endanger the Rs2.5 billion estimated to be in the workers’ provident fund.
He also expressed concern over the deteriorating conditions of the KESC generation, transmission, and distribution system and urged the management to immediately address the dwindling generation and overloaded grids. He said if that was not done, Karachi would face widespread breakdowns very soon.
He named one of the directors of the KESC as being responsible for the delay in the procurement of rental power and work on the 560-megawatt generation facility at Bin Qasim. He said tender of that project was floated in 2007 and its evaluation was done in June last year. But progress could not be made due to vested interests of management officials. Had the processing been done on time, by next year about 800 megawatts would have been added, he said.
Meanwhile, there are indications that the new chief financial officer of the KESC, Jaleel Tareen, will take charge by Aug 15. Meanwhile, the CEO, Gen (retd) Amjad, has not resumed office and there is no one to take command in his absence.