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BR Research

Need to learn from KESC

Published May 29, 2013 Updated May 29, 2013 12:00am

The KESC twitter page was flooded with queries regarding Karachi the other day, as the SSGC reduced gas supply to KESC. The SSGC was of the view that KESC should clear its dues running in billions before it starts crying foul over reduced gas supply. The KESC on the other hand, maintained it has made payments on all its purchases.
It took a press conference from the MQM and an intervention from the Sindh Governor to settle the dispute. That said the gas supply to KESC is still way off the agreed upon 276 mmcfd from the SSGC, hence the loadshedding.
The perception in some circles in Punjab is that Karachi does not undergo loadshedding, which is false. It is true that the magnitude of loadshedding is far lesser than what it is in other areas of the country, but it is not due to any preferential treatment of any kind to Karachi, as is widely perceived. It is by and large down to KESC being a private and an efficient entity, which makes efforts to maximise collections and distribute loadshedding accordingly.
While the gas supply is back to where it was last week, there are still a number of questions hanging over Karachis fate in the ongoing power crisis. The nominated Prime Minister has made repeated statements post victory, that the power crisis is not going away anytime soon, and he is right. To overcome the mess, a number of tough decisions will have to be taken, of which equality of loadshedding is certainly not one.
Why Karachi suffers lesser loadshedding should indeed be a lesson for the government rather than an element of jealousy. The message is simple - privatise the power sector, from generation to distribution. This is why KESC manages to serve over 20 million consumers with far less complains than any other distribution company in the country.
The message needs to go through that Karachi does face loadshedding; despite the 650MW it gets from the national grid. Any thoughts of withdrawing the 650MW from NTDC to KESC should be dropped off, as it would certainly be a deadly blow to the fortunes of the industrial, commercial and financial hub of the country.
The 650MW that KESC gets is under a legally bound contract that does not expire before early 2015. KESC has also been a good payer to the NTDC having paid Rs189 billion against the power purchase of Rs185 billion since 2009. Furthermore, the benefit of 650MW withdrawn from Karachi would be just a 30-minute reduction in loadshedding for the rest of the country, which is certainly not an option worthwhile.
One hopes that the upcoming government sticks to its promise of depoliticising and decentralising the power sector, which would yield positive results soon.

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