All notices issued so far by the Karachi Electric Supply Company (KESC) to industrial consumers of Site area in respect of payment of security deposits would be held in abeyance and shall not be given any effect for the purpose. Further, in future, the regularisation of electrical load shall be on the basis of Maximum Demand Indicator (MDI), and not on the connected load.
These important decisions were taken at a meeting held here on Saturday in Site Association of Industry (SAI) office between Engr M A Jabbar, Chairman, SAI, Aamir Zia, Deputy Chief Operating Officer, and Hassan Raza, Deputy General Manager, Network Co-ordination, KESC. The meeting was held to remove concerns relating to the issuance of notices in relaxation of proper checking by KESC to industries in Site area following a letter written by SAI on March 25 to Naveed Ismail, CEO, KESC, regarding payment of security deposits by industrialists.
All industrial consumers, who have received the notice, may examine their position in respect of payment of security deposit in the light of the following parameters:
-- What is the actual security deposit (SD) amount which they have paid, and does not match with the SD reflected in KESC notices? - Justification is needed that the SDs during the relevant period have been paid on the basis of rate prevalent at that time.
-- That the additional demand, if any, by KESC reconciles with the application of Nepra decisions. - That the SD shall be matching with the maximum demand of the load registered by MDIs and the regularisation of load shall be same as maximum demand registered.
-- KESC after receipt of the above information will update its SD held for industrial consumers. KESC will also re-examine, on case to case basis, in the light of the merit and will only raise the demand of additional SD after satisfying the industrial consumer supplied information.
-- KESC has agreed to carry out this exercise with the help of SAI and in such cases where information by the industrial consumers does not constitute any demand the same notice, held in abeyance, shall be treated cancelled. KESC has further assured that transparency, mutual trust and satisfaction of the industrial consumers will be the ingredients of mutual settlements. KESC officials, on behalf of management, expressed apology on issuance of such notices which do not reconcile with the actual situation against the contents of the notices issued, which also have frequency of reference to the connected load, instead of MDI, as the basis of levelling the SD deposit.
Jabbar had written to CEO, KESC, that the notices issued by KESC, demanding increase in SD, needed to be revisited and re-examined on the basis of Nepra decision in this regard that has statutory binding on the utility. Any breach in terms of the expressed position of the decision given by Nepra, by the utility would constitute illegal, untenable and otherwise not applied position which would result in development of agitation before Nepra, competent authority having quasi judicial powers, he had pointed out.
The message was explicitly conveyed that it was SAI's sincere desire that the relationship between KESC and "the biggest industrial estate" should be based on conducting smooth business without any conflicts and contradictions. KESC is the recipient of the biggest share of revenue with least T & D losses in Site area. It was imperative that the future relationship remained cordial and harmonious.
Jabbar informed the meeting that in view of Nepra's decision, as would apply to KESC, the utility could only raise a demand in the following cases: before provision of a new connection, restoration of a connection, and approval of extension of load. He placed a demand before the KESC officials present in the meeting that the exercise of issuing notices should be withheld and the notices issued so far be withdrawn immediately.
Aamir Zia, Dy. Chief Operating Officer apologised for the issued notices without proper checking. He assured that it was their utmost priority to keep cordial and harmonious relationship with KESC's industrial client.
The SAI Chairman said that several members of SAI had forwarded their cases in respect of SD, and claimed that KESC had not updated their records against actually paid SD for industrial consumers at the rates relevant and applicable during the said periods. He handed over few cases to Aamir Zia to confirm the position as explained by him. Aamir Zia re-assured SAI of no action on the notices issued. He also proposed another meeting when the information provided by the industrial consumers will help them in updating the SD of industrial consumers.
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