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The non-consideration of multiple requests and lack of support from SSGC to improve gas supply to the sole power supplying utility of Karachi, KESC; has exacerbated the power crisis. There are no signs of improvement in the gas supply from the current abysmal levels of 115-120mmcfd and 80MW of additional power supply shortage due to the shutdown of KANNUP, while the power demand of the city still being around 2200MW.
This has left KESC with no choice but to widen the load-shedding ambit to the previously exempted KWSB installations. KWSB will now have a load shedding spell of four-hrs daily, implementable from 5:00pm November 24th.
KWSB despite being the No 1 defaulter of KESC, owing power bills to the tune of Rs 15.3 billion, has been enjoying load-shedding exemption and has always been serviced on priority basis and never subjected to load-shedding even in the worst of power crisis. KWSB payments and dues are backed by the federal government by virtue of a sovereign guarantee, which makes all such outstanding dues to be payable by the federal government in case of default by KWSB. KESC has requested the ministry of finance a number of times to directly pay off the Rs 15.3bn power dues owed to it by KWSB to SSGC but to no avail.
The primary issue of the current power crisis in the city is being fuelled by the mismanagement of natural resources by SSGC. If SSGC even today adheres to the 'Gas Allocation Policy' in letter and spirit, the current crisis could be overcome to a large extent. Instead of giving priority to its largest purchaser, who also pays the highest per unit rate (KESC), SSGC chooses to keep KESC on the lowest rung of its supply preference. This can be witnessed from the fact that even in the current gas supply crisis, it is only KESC that has been subjected to supply curtailment despite being a public utility, while the industrial sector and even captive power plants have merely been asked to voluntarily reduce their gas consumption at best.-PR

Copyright Business Recorder, 2011

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