90pc KE reconciliation process over: Rs170bn record subsidy to be given to Karachiites: govt

KARACHI: K-Electric’s long pending financial issues with government departments, Tariff Differential Claims (TDCs) and Gas Sale Agreement (GSA) with Sui Southern Gas Company Limited (SSGCL) will be resolved soon, Federal Energy Minister Engineer Khurram Dastgir Khan Friday said, adding that 90 percent reconciliation process on these issues has been completed.

Also, he said the federal government is going to provide a whopping Rs 170 billion subsidy to Karachiites through KE in the next financial year (FY23-24).

The federal government is also providing subsides to consumers across the country through their respective Discos. “These are budgeted subsidies, which will not affect Pakistan’s ongoing talks with the International Monetary Fund (IMF) for the revival of the stalled loan programme,” he added.

Regulatory, financial issues: KE seeks intervention of Khaqan

Addressing a press conference at KE head office, the minister said KE’s financial matters with government departments, such as TDC, renewal of GSA with SSGCL and power dues, will be resolved soon, as 90 percent reconciliation process on these issues have been completed.

This reconciliation committee is being headed by PML-N leader and the former Prime Minister Shahid Khaqan Abbasi, who is currently active in a seminar series ‘Reimagining Pakistan’ with his party colleague and former Finance Minister Miftah Ismail.

The Energy minister said that government is also introducing a policy in the country, under which the power distribution companies (Discos) including KE will be bound to make their load management plan (area-wise load shedding) at PMT level. This will greatly resolve the grievances of loyal consumers, living in the high-loss areas, but pay their electricity bills, on a regular basis.

To a query about concerns of Saudi company M/s Aljomaih Power over undue delay in resolution of issues related to KE, the minister said that Prime Minister Shehbaz Sharif has constituted a committee under the supervision of Finance Minister Ishaq Dar to sort out the issues.

The federal government appreciated KE for ensuring uninterested power supply to 70 percent areas of Karachi. Industrial areas are exempted from lead shed.

Tropical Cyclone Biparjoy caused disruption in gas supply to KE plants; however the government stepped in, and ensured 100mmcfd gas to the power company on immediate basis. The rest of 30 percent areas are facing load shedding due to low recovery, and theft. In order to mitigate electrocution risks during rains, floods, KE has carried out earthing of 1 lakh poles.

He urged the newly elected local bodies’ representatives to establish coordination with KE to resolve the power theft issues in their respective areas to get uninterrupted electricity supply.

He said the federal government recommended closure of markets by 8PM as part of its energy conservation plan. The federal cabinet approved it, recently. Now, it’s the responsibility of provincial governments to implement the plan.

Copyright Business Recorder, 2023