The K-Electric disconnected power supply to head office of Karachi Metropolitan Corporation (KMC) due to non-payment of monthly electricity bills. It forced the council members to hold budget session outside the hall where they approved Rs 26.44 billion KMC budget for the fiscal year 2019-2019 amid strong protest from the opposition benches, particularly from Jamaat-e-Islami (JI).
Both KMC and KE have called each other defaulter of bills. Karachi Mayor Waseem Akhtar claimed outstanding receivables of Rs 4.4 billion against K-Electric as the latter said KMC still owes Rs 4.11 billion to it. After the power cut, KMC had to make emergency arrangements to resume the budget session at lawns of Old KMC building, instead of the hall.
Waseem said that non-release of funds from Sindh government's finance department in the head of power bills to KMC and abrupt power disconnection of different departments of civic body by KE were in violation of the Supreme Court orders. He requested the top court to take suo moto action in this regard. He said the SC had directed KE not to disconnect KMC power supply till the settlement of billing dispute. During the hearing, Mayor cited, it was decided that KMC would pay Rs 580 million power dues of some 71 connections to KE while the rest of dues to be cleared through reconciliation.
Realising the financial compulsions of resource-starved KMC, the SC had directed provincial government to increase the corporation's monthly grant so that the power dues (both current and past's) could be cleared. He said the provincial government has to pay Rs 50 million to KMC on account of power bills, each month.
"K-Electric's negative exploitation will not be accepted by citizens, and if it continues, we will register protest stiffly," mayor warned. He said KE owes Rs 8 billion dues to KMC while the KMC has to pay Rs 4.5 billion to the power company and this issue is going on since 2010 when administrators were running KMC.
K-Electric said that multiple power connections of KMC have been disconnected on account of non-payment of monthly electricity bills. It said the court had directed KMC to pay monthly electricity bills from April 2019 onwards to KE out of which no payment has been made since court order issued in April 2019.
KE had served several notices to the municipal body for payment of those monthly bills prior to disconnection. KE spokesman urged the authorities concerned to pay outstanding dues as per the Court orders at the earliest. Various federal and provincial public sector entities owe to K-Electric (KE) that said its outstanding receivables have ballooned to Rs 172 billion while Karachi Water and Sewerage Board (KWSB) owes Rs 32.07 billion to KE. The KE said in a statement that one of its office properties had been damaged by KMC later. However, when Business Recorder approached KE spokesman for relevant details, he refused to comment.