Responding to points raised by some members of Senate's Standing Committee on Water and Power, KESC has termed them as unfounded and based on incomplete or flawed information. KESC has reminded the senators that the power utility serves over 20 million consumers across 6,500 square kilometres stretching from Gharo in interior Sindh to Uthal, Bela, Winder, Lasbella and Hub Industrial zones in Balochistan.
People living in these areas contribute two thirds of federal government tax revenues and this very money has been used in the past to build thermal, nuclear and hydro power projects in other parts of the country. 650MW from NTDC is, therefore, the legitimate right of this tax paying population.
It is also noteworthy that contrary to the misconception, the 650MW represents less than 5 percent of national grid capacity and even if NTDC has this capacity available, it would only reduce the current load shedding duration in the country by no more than 30 minutes. However, Karachi would certainly face a major power crisis if this capacity from NTDC is not available. It is also pertinent to mention here that Sindh produces 70 percent of gas whilst consumes only 35 percent of it within the province, contrary to Article 158 of the Constitution? It is because of this misallocation that KESC never gets the required volume of gas to run all its efficient gas-fired power plants. Even at this peak summer time when the demand has reached an unprecedented 2650 MWs, KESC's average gas supply during May has been 130-150MMCFD which is significantly lower than the 276MMCFD committed.
The power utility reminds senators that KESC has a 5-year legally binding agreement with NTDC guaranteeing 650MW supply to KESC from the national grid. The contract expires in early 2015. It is also important to note that during the last four years, KESC is perhaps the only power company that has paid more to NTDC than the cost of the electricity purchased. From 2009 to date, KESC has paid NTDC Rs 189 billion against power purchase of Rs 185 billion. Furthermore, pursuant to CP No 4485 of 2012 (SITE Association of Industries versus Federation of Pakistan and Others) and suit No 1726 of 2012 (Abdul Karim Khan versus Federation of Pakistan and Others), the High Court of Sindh has granted a stay order against any reduction in power supply from NTDC to KESC until the matter is disposed off.
KESC has once again reiterated that the present management and shareholders of KESC are fully committed to build the power utility on sustainable grounds, testimony of which is over a billion dollar investment that has been made so far in major infrastructure projects, including over 1000MW new generation capacity. Senate's august body must not make speculative statements as this would only send an extremely negative signal to potential investors who we so desperately need as a country.-PR
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