Raja warns of regaining KESC control

[LahoreEstate]

RECORDER REPORT
ISLAMABAD (May 23 2009): Federal Minister for Water and Power Raja Pervez Ashraf on Friday warned to regain the management control of Karachi Electric Supply Company (KESC) if the administration fails to make necessary arrangements for improving efficiency. He was responding to the Members of National Assembly Standing Committee on Water and Power that met here.

The Minister said that KESC administration has failed to make necessary investments to improve the distribution and transmission system adding that the government has the right to retake the management control of the key utility service of the city.

He said that Pepco was currently exporting 710 megawatts to KESC against 570 MW last year but the KESC management had failed to clear the dues of Pepco. Raja said that the government was under pressure due to the IMF obligations to eliminate subsidies on power by June this year. "The government is paying Rs 164 billion subsidy to electric consumers per annum, he said.

He said that the average cost of electricity in the country was Rs 8.3 per unit, whereas the government was selling it at subsidised rate of Rs 1.5 per unit to over 4.7 million consumers of low income group. "The majority of domestic consumers was not paying even the cost of power generation and were paying only transmission cost and other charges," he said.

The Minster informed the committee that the electricity supply has increased from January this year due to better delivery of furnace oil and improved management of water system. The furnace oil prices have decreased in the international market bringing it in the purchasing power of the electricity producers, who were facing 'liquidity crunch' few months back.

Raja Pervez Ashraf also informed the committee that the current average electricity shortfall was 2000 megawatts but it would increase in the coming months. "Due to heavy demand from air-conditioners the shortfall may increase to 3000 megawatt in the month of June and July," the Minister added. The Minister reiterated that loadshedding would be eliminated from the country by the end of current year, and informed the committee that more than $4 billion worth of investment was being poured in the electricity sector to meet the shortfall of 3000 megawatts.

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