Unconditional undertakings: industrialists accuse KESC of violating Nepra rules

Industrialists on Wednesday accused Karachi Electric Supply Company, of violating Nepra's Consumer Rules, after the power utility urged its industrial consumers to give unconditional undertakings on power connections.
According to a copy of the undertaking issued by KESC, obtained by the Business Recorder, the company demanded industrial consumers to agree unconditionally to utilise sanctioned load up to a minimum of 50 percent and commence normal utilisation of power supply from the company "to the satisfaction of KESC".
"KESC shall be entitled to review my (consumer's) performance under the Undertaking on a monthly basis to ensure the consumer's continuing compliance with the above".
"This undertaking is in addition to and not in derogation of any other rights or remedies that KESC may be entitled to under the law and in particular the provisions of the Consumer Service Manual issued by Nepra and the provision of the Electricity Act of 1910."
Industrialists and shareholders of the company rejected the move, saying that the move was in violation of the Nepra rules. KESC, they said, had no authority to impose new rules and conditions in addition to existing rules set by the authority concerned.
Sources said that despite Nepra's directions, KESC had not yet restored all industrial power connections, disconnected by the power utility on the pretext of under utilisation of sanctioned load or having alternative power generating units.
Masroor Ahmad Alvi of the FB Area Association of Trade and Industry told Business Recorder that they had filed a petition in the Supreme Court against KESC's recent move, calling for immediate restoration of power connections.
Those who filed individual suits have got a decision in their favour and now their connections have been restored, he said, adding that some five or six industrialists, having captive power plants, had obtained a decision from the Sindh High Court in their favour.
General Secretary of KESC's Share Holders' Association Chaudhry Mazhar Ali believed that the fresh KESC move could not force industries to voluntarily stop running captive power units as they were regular consumers of the Sui Southern Gas Company, who paid their dues regularly. He said that the power company would also bear huge revenue losses if it carried out its threat to disconnect industrial units. The management of KESC, he said, would have to face an unnecessary confrontation with the industrialist, who were regular and important consumers of the company.
Aminur Rehman, the spokesman for KESC reminded that only a day ago, the Sindh High Court had given a judgement in favour of KESC.
He said that the Sindh High Court had upheld KESC's intrinsic right to disconnect industrial consumers who had changed their purposes for electricity connection by shifting their KESC connection to standby mode.
Aminur Rehman pointed out that the learned Judge reviewed the notices sent by KESC issued pursuant to Section 20 of the Electricity Act, 1910 read together with Chapter 8 and 14 of the Consumer Service Manual issued by NEPRA.
"These notices reflected a genuine problem being faced by KESC in relation to having to provide infrastructure in load management facilities where irregular load consumption was rampant because of predominant use by industrial units of captive gas power generation to fulfil their requirements. In view of non-utilisation of sanctioned load and change of purpose, KESC was constrained to notify these units that they were at risk of disconnection as such conduct was in violation of law", he added
KESC had urged the government to fulfil its contractual obligations and supply additional 130 MMCFD gas to the newly installed 560-megawatt plant in the larger interest of the common man.