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A large number of consumers, who are suffering due to the fresh moves of Karachi Electric Supply Company (KESC) for readjustment of sanctioned loads, removing 3rd meter and disconnection of electricity supply to industries having their own captive power plants, have approached National Electric Power Regulatory Authority (Nepra).
After receiving many complaints against KESC, Nepra has decided to hold a public hearing in Karachi shortly, wherein the authority would hear to the complainants and representatives of the privately-run power utility. During the hearing, which, according to sources, is scheduled for June 11 and 12, a petition filed by KESC for adjustment of monthly fuel surcharge would also be discussed for which the authority has already invited interveners to oppose the petition. During the two-day hearing, another petition filed by KWSB for reduction of KESC's tariff to it by 50 percent would also be discussed.
KESC has started checking/inspecting the power load consumed by domestic, commercial and industrial consumers against the already sanctioned power. A consumer, in case of using electricity more than the sanctioned limits, will be paying the additional amount adjusted against changed tariff structure, besides revised security deposits.
This way, sources claimed, the foreign management of the company would be able to pocket billions of rupees. The company has decided to adjust the security deposits despite a clear decision of Nepra that the deposits from the old/existing consumers would not be enhanced or adjusted. The decision was made by the authority during a public hearing of a petition filed by KESC demanding increase in security deposits in 2010.
Under the move, the power utility is issuing a survey form to the consumers asking that what is their power consumption and sanctioned load and whether they needed to enhance the sanctioned load as per their present consumption of power or demand. The company after evaluating the present consumption would decide about the deposits needed to be paid by the consumer as per the new sanctioned load. "If the consumption is more than the sanctioned power then a consumer may be charged with average Rs 5000 in addition to their already paid deposits to KESC as per the fresh move," they claimed. According to Chaudhry Mazhar of KESC Share Holders Association, the move is illegal. He says KESC should approach Nepra for any change in the deposit's rate.
He said that the company's proposed move to bring any change in the rates of security deposit was not only violation of Nepra rules but also another unjustified step against the crisis-hit consumers. Through the fresh move, he claimed, the KESC would make around Rs 8 billion revenue through a one-time collection. The company, at presently, has the deposits of over Rs 4 billion, which is passing only five percent interest to the depositors.
However, according to KESC, the 3rd meter removing initiative is in accordance with the Nepra requirement, which envisages one meter for one premises. KESC at present has opted to take out the third meter only and would let the first and second meter remain intact, to eliminate irregular consumption of power so as to stabilise power distribution system and optimise load management concerns.
By irregular consumption it is meant that the consumer's load has not crossed the energy limits for two meters and the third meter has only been installed to gain illegitimate slab benefits without ensuring that the connected load of the third meter and the power consumption correspondingly match between the other two meters. All security deposits and payment made for any additional/third meter would be adjusted against electricity bills being duly generated on the other meters etc.
KESC has sent notices to such consumers who have three or more electricity meters at one premises, which should technically and ideally have one meter. In case of irregular consumption, KESC would have the right to detach or cancel one of the existing extra meters installed at such location without providing any further notice, to balance the load on the other meters.
Besides, KESC has also disconnected power supply to the industrial units, using gas-based captive power plants, on the pretext that there was no use of keeping electricity connections at such industries where power consumption from the utility's system is much low or virtually zero. The company has identified some 200 industrial units across the city that have been using captive power plants for their electricity needs and such units could face disconnection by the power utility. The industrial consumers are very frustrated over the company's decision despite paying the electricity dues regularly. According to Nepra rules, no power supplying company was authorised to disconnect the power supply to a consumer, which pays the dues regularly.

Copyright Business Recorder, 2012

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