KARACHI, Nov 28: Industrial areas along with commercial and residential areas in the city continued to experience power loadshedding on Monday despite the fact that a written agreement was signed by representatives of the KESC, the SSGC and the KCCI to bring an end to the suspension of power supply in the industrial areas.
A Karachi Electric Supply Company (KESC) spokesman said that the industrial zones would be exempted from loadshedding once gas supply to the power utility was increased to the level of 180 MMCFD (million cubic feet a day) according to the deal.
The agreement negotiated by the Federal Minister for Petroleum and Natural Resources Dr Asim Hussain was signed on Saturday by Siraj Kassam Teli of the Karachi Chamber of Commerce and Industry (KCCI), Azim Iqbal Siddiqui of the Sui Southern Gas Company and Tabish Gauhar of the KESC at the Governor’s House.
“As yet there has been no increase in the gas supply by SSGC, and KESC is still receiving nothing beyond 120MMCFD, as has been the case since the past fortnight, which is primarily the reason for the current power crisis in the city, especially the industrial zones,” said the KESC spokesman.
As soon as the agreed level of gas was received from the SSGC, the KESC would not only implement the zero loadshedding plan for industries but the suspension of power supply to residential and commercial areas would also be reduced, he added.
Speaking to Dawn, Mr Teli said he had spoken to the federal minister about the non-implementation of the gas supply accord and had been assured of improvement in the situation.
However, many industrialists apprehended that even after the resumption of uninterrupted power supply to industries, processing units would continue to suffer because of a drastic drop in gas pressure from 8.5 to only three. “Our boilers will not be able to operate,” said an industrialist, Majiyd Aziz.
Circular debtAccording to the agreement the SSGC was supposed to supply 180MMCFD gas to the KESC with immediate effect with the following conditions:
Rs2 billion shall be paid to the SSGC by Tuesday (Nov 29).
Another Rs2.4 billion (November 2011 bill) and Rs600 million shall be paid in December 2011.
The KESC shall also pay Rs300 million to clear the past arrears over and above the current bill of December 2011 from January 2012 on time.
Under the agreement, the governor and the federal minister for petroleum and natural resources will make the provincial and federal governments pay Rs15 billon owed by the KWSB to the KESC directly to the SSGC.
It is the responsibility of the ministry of finance to make the payment/adjustment as per the agreement.
While all industries will be closed down on the next four Sundays (i.e. till the end of December 2011), the situation is expected to normalise afterwards as the Kunar Pasakhi field is expected to come online by the end of December.
The gas supply to fertilizer companies would be initially curtailed to 48MMCFD and completely disconnected in December and January 2012.
It was also agreed that gas supply to CNG stations would be curtailed for two days in a week.
The agreement binds the power utility to exempt industrial areas from loadshedding and the gas company to ensure provision of 180MMCFD to the KESC. Any plan to change this decision shall require a meeting of the stakeholders — the KCCI, the SSGC and the KESC — under the chairmanship of the Sindh governor.
According to the accord, the KESC will conduct massive disconnection drives against defaulters without any exception.