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Why should KESC have a monopoly on supplying Karachi? - LRE - 07-19-2008 05:42 PM
Why should KESC have a monopoly on supplying Karachi?
By Irfan Aligi
KARACHI: Representatives of traders, along with commercial and residential consumers of Karachi Electric Supply Company (KESC), have demanded the government end the power supply utility’s monopoly if it wants to end load shedding and excessive billing problems.
Small and Medium Enterprises Resource Centre President and Shehri-CBE former chairman Khatib Ahmed told Daily Times that he had approached the Competition Commission of Pakistan (CCP) Chairman Khalid Mirza but he had refuted the idea that the KESC was a monopoly. “Mirza enquired about the basis of the claims and when he was informed that the entire population of Karachi and all small and major business enterprises were compelled to obtain power connections from the utility, he did not accept the argument,” said Ahmed.
He said that the CCP was supposed to protect consumers and curb the establishment of monopolies but, unfortunately, it is doing the complete opposite. “The government claims that it has no authority over the KESC as it was removed from the public sector after privatization. However, if such is the case, then why has the government been giving KESC an annual subsidy of Rs 18 billion and why has the National Electric and Power Regulatory Authority given KESC the authority to increase its tariffs,” questioned Ahmed, adding that they were ready to move the Sindh High Court against the utility.
According to him, the only way to overcome load shedding was to allow independent power producers to have equal access to citizens as consumers and the Water and Power Development Authority (WAPDA) should be in charge of consumer related matters.
All Pakistan Organisation of Small Traders and Cottage Industries General Secretary Mahmood Hamid told Daily Times that the KESC had failed to efficiently serve its consumers and that the KESC management had affected the small and medium scale cottage businesses. He informed that the management, in a serious violation of the agreement with the Pakistan government, had not fulfilled its commitment to invest US $ 500 million immediately after privatization, instead, securing huge amounts through the sale of shares.
“The past three days have been particularly frustrating, with many businesses and residents losing all hope in the government’s policies. The load shedding is partly due to the outdated power generation units and partly due to the KESC’s plans to save furnace oil expenses and although well aware of these facts, no authority dared to take action against the utility,” said Hamid.
Retailers-Grocers Alliance Karachi Patron-in-Chief Ansar Baig Qadri stressed the need for the government to take actions against the KESC for not improving its power generation resources. He suggested that open katcheris be held in all towns of the city and the losses suffered by consumers should be determined and the KESC should be made to repay the consumers.
“Due to load shedding, children were unable to access the Internet and complete their work on time, which is a loss that the KESC alone is responsible for, said Qadri.
Karachi Taxi, Motor Rickshaw, Yellow Cab Owners Association President Hafiz-ul-Haque Hasanzai said that although the transport is powered by fuel such as diesel, petrol, CNG or LPG, all other maintenance work was dependent on electricity. He informed that load shedding had inflicted irreparable losses on more than 600 workshops and rendered hundreds of daily-wage workers jobless. “Taxi drivers spend the entire day in the scorching heat and when they reach home, they are further tormented by load shedding,” remarked Hasanzai.
Association of Marriot Road Traders President Usman Sharif said that the government needed to, either, nationalize the utility back or place gas-powered portable power generators at major markets to provide some relief to shopkeepers and traders. Shagufta, a resident of Nazimabad, stated that blaming the previous regime’s misgivings regarding investment in power generation sources was a lame excuse as the issue has been ever present.
“The KESC’s former managing director was talking about bringing power-generation ships to the city but it seems that he cannot even bring a boat,” she said, appealing to the government to renationalize KESC. Shaista, a teacher and resident of Metroville, told Daily Times that load shedding had made it impossible for her to wear a burqa, as the heat is unbearable.
Arsalan, a student, said that he had become accustomed to the load shedding and that the load shedding would be more acceptable if the electricity bills were also lesser.
http://www.dailytimes.com.pk/default.asp?page=2008%5C07%5C19%5Cstory_19-7-2008_pg12_1