The government is determined to reduce electricity tariff in the forthcoming budget to make the utility affordable.
Federal Minister for Water and Power Minister Aftab Ahmed Khan Shepao stated this at the inaugural ceremony of a new KESC transformer at Gulshan-e-Iqbal grid station here on Saturday.
He said that government wanted to provide relief to all electricity consumers, including domestic, commercial, industrial and agricultural.
He said that the ministry had constituted two task forces to make recommendations on tariff rationalisation which have already submitted their reports. Presently, these reports are being studied to determine the quantum of tariff reduction, he added.
However, the cautious optimism he showed on electricity tariff reduction gave the impression that the budget would remain far from bringing about any substantial reduction in power tariff.
He contended that budget had no direct link with power tariff determination which was purely the duty of Nepra. "We cannot bypass Nepra's decision. Any reduction in electricity tariff will be made in complete consultation with the Authority which has already made two successive cuts of 4 and 8 paisa per unit in electricity tariff recently," the minister observed.
The eight paisa reduction has already been notified, while the other cut would also be notified shortly, he added.
He cited uninterrupted gas supply to power generation plants and improvement in distribution system as major reasons for two successive cuts in power tariff. Likewise, he assured that the benefits accrued from any further saving, improvement in Wapda/KESC systems would continue to be passed on to the consumers.
About frequent power breakdowns in the city, he said that the gap in the power generation capacity of KESC and the electricity requirement of the city were major causes for this anomaly. He hoped soon after the establishment of KESC-Hubco 1000 MW link line the problem of loadshedding would effectively be overcome in Karachi.
He said that the tenders for proposed project of KESC-Hubco link, worth Rs 3 billion, had been opened and the final contract would be awarded to the successful bidder in a week's time after which work on the project would be initiated soon.
About the ongoing rehabilitation plan in KESC he said that a project worth Rs 13.6 billion envisaged complete overhauling of KESC system including upgradation of transformers, grid stations, revamping of transmission and distribution network to bring down its present 38 percent T&D losses to 24 percent in the next four years. Besides, two barge-mounted power plants, having power generation capacity of 38 MW each would also be acquired in next six months which would operate on gas, he added.
He also called for setting up a crisis management cell in KESC to resolve the problems of the consumers.
Highlighting the investment opportunities available in the power sector he discussed the offer recently made by an American company, JSP, to install a garbage/coal operated power plant of 500 MW to produce cheap electricity in the city.
He said that construction of new water reservoirs was must to meet the future water requirements of the country. These reservoirs would be constructed without doing any injustice with any of the provinces, he added.
On expected shortfall of river water he said the shortfall would be shared by all provinces proportionately and no single province would be left to bear the brunt alone. He pointed out that his ministry had constituted two committees--a political and a technical one--to closely monitor water distribution, and termed the present distribution fully judicious as undertaken in complete consonance with Isra according to 1991 Act.
About Hyderabad water contamination incident he said though the ministry had constituted a committee to look into the matter and present its report, it was purely a provincial matter. Any action would be taken after the submission of this committee report, he added.
MD, KESC, Tariq Saddozai and Deputy Chief Engineer, KESC, Tariq Noor, also spoke on the occasion, whereas prominent among others who were also present on the occasion were Chairman KESC Riaz Ahmed Khan, City Nazim Naimatullah Khan, Naib City Nazim Tariq Hassan, provincial minister Shoaib Ahmed Bukhari, and MPAs Nasarullah Shaji and Mohammad Hussain Mahnati.
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