K-Electric saw Nepra’s observations after the authority’s short press note, as a vindication of its stance. And some would say, rightly so. Nepra in its observations and decisions made it clear that no uncertain terms that KE must be getting more gas. The authority has sent an advisory the government to immediately restore gas supply to 190 mmcfd to KE by the SSGC.
Recall that since the last two weeks, KE and SSGC have been taking contrasting positions on the issue. And while no party can claim to hold a strong legal background, KE’s stance seconded by Nepra does throw some weight behind it. “The advisory issued by NEPRA to ensure 190mmcfd gas is made available to K-Electric, is a positive reinforcement which will certainly enable KE in restoring power supply to city to routine,” said the KE spokesperson speaking to Business Recorder.
A Sindh High Court order dated April 17, 2018 has also issued notices to the government of Pakistan and the SSGC to comply with the earlier orders of making maximum efforts to supply 276 mmcfd gas to KE. Given such sense of urgency from the court and Nepra alike, the ball is sitting pretty in the government’s court. Surely, SSGC may other contractual obligations, but such directives from courts and advisory from Nepra would be difficult to ignore – unless the SSGC and the government come up with an equally strong counterclaim.
The KE has further clarified that Nepra’s observation on its gas turbine plants as regards using dual fuel is a matter of long technical process. According to the KE, while the infrastructure is in place as stated by Nepra, there is no clarity regarding the tariff mechanism for HSD, and the type of fuel to be used as the other fuels. KE opines that more clarity is needed on this point, as this needs to be evaluated on strictly technical terms, and that KE would respond to Nepra, when asked in more detail.
KE maintains that all FO units, barring one, are up and running. And that KE had notified Nepra of the maintenance shutdown of one of its units, in preparation for peak summers and Ramadan, and had not factored in a sudden drop in gas supply from SSGC, which has resulted in the present day situation. On the underutilization of one unit during morning hours, KE maintains that it will respond to Nepra, if and when, asked to, as these are areas of more technical details.
The KE spokesperson went on to say that “we respect Nepra’s observation and will respond when asked”. As things stand today, improvement in the current situation seems all dependent on gas supply from SSGC. Whether the KE will now immediately start making efforts to commission plants on alternate fuels, remains to be seen, but the correspondence with KE sources tells, this can wait.
Comments
Comments are closed.