KARACHI, Jan 7: The federal government will soon release the first instalment of Rs one billion of the Rs13 billion package announced for improvement of the operational working of the KESC, said the Managing Director of the KESC, Brig Tariq Saddozai, here on Tuesday.
Replying to newsmen’s questions at a briefing by Minister of State for Water and Power Khalid Ahmed Lund at the KESC head office, he pointed out that in accordance with the government’s decision, the Karachi Electricity Supply Corporation was to be privatized by September 2000, but because of conditions in Karachi as well as the international situation, no bidder came forward, so the government decided for the KESC ‘s turnaround with the available resources.
He said an improvement plan was prepared and submitted to the government which was approved.
Accordingly, of this Rs13 billion plan, Rs4.5bn will be spent on the rehabilitation of the distribution system and to check power theft, and Rs6bn will be spent on improving the transmission system by building new grid stations in areas where commercial and industrial activity is increasing but electricity is not reaching those places.
The MD informed that Rs2bn would be spent on the establishment of a model state-of-the-art load dispatch centre. Similarly, the generating stations were to be rehabilitated and this entire plan would take four years to complete.
He said the minister had been requested to get Rs1bn released so that work on this plan could begin.
He said as a result of this plan, the KESC, running into a loss of Rs17bn now, would enter the stage of profitability with a profit of Rs1.5bn in 2006.
Replying a question, Brig Tariq said the KESC system was facing a generation shortage of 1,000 megawatts and unless new plants were set up to generate an additional 1,000mw, the shortage would persist.
He informed that as an interim measure the government had approved the linkage of the KESC with Hubco to get direct electricity from the 1,200mw Hubco plant.
The MD KESC said the minister had been requested to get this project implemented at the earliest to overcome the 1,000mw shortage.
Answering another question, Brig Tariq said the relief of 12 paisa a unit had been given in respect of Wapda, while Nepra had allowed a cut of six paisa a unit for the KESC. He said basically this cut was in respect of the Fuel Adjustment Charges and Nepra would keep reviewing the fuel prices after every three months and in case of cut in international fuel prices, its benefit would be passed on to consumers.
He said this relief of six paisa a unit would cost the KESC Rs450 million a year.
He told a questioner that today the minister had been given a detailed briefing on the Kunda system.
About billing, he informed that a review committee had been formed for big commercial and industrial establishments and some 38 cases had been settled in the past six months, and in most cases the benefit had gone to consumers. He said decision was taken in the maximum period of 12 days and on merit.
He informed that the KESC was setting up customer service centres. The centres would be housed in the KESC’s 16 billing centres.
Several decisions were taken and the working of the KESC was reviewed at a meeting held under the chairmanship of the Minister of State for Water and Power, Sardar Khalid Ahmed Lund, here at the KESC head office.—APP