KE petition for cut in FCA: Consumers' representatives oppose proposed cut as nominal

Representatives of domestic, commercial, and industrial consumers, and members of civil society opposed a K-Electric petition at a public hearing by Nepra for 93 paisa per unit cut in electricity price for three months under fuel charges adjustment (FCA) for what they said being nominal, demanding that the decrease should be considerable in wake of marked decrease in oil prices and other factors.
Nepra on Wednesday conducted a public hearing on a K-Electric petition regarding monthly fuel charges adjustment. Through the plea, the power utility has sought permission from the regulatory authority to cut electricity total price by 93 paisa per unit for three months, July, August and September, 2014 on account of FAC.
The hearing was conducted by Chairman Nepra Habibullah Khilji and Major Hroon (Retd), member of the regulatory body, here at a local hotel. Representatives of domestic, commercial, and industrial consumers, KESC shareholders, and members of civil society attended the hearing and submitted their complaints, grievances, and objections regarding electricity issues with the power utility. Muhammad Amir Ghaziani, director finance and regulation K-Electric, while giving presentation on the subject matter requested the representatives of Nepra to grant permission for reduction of 5 paisa for the month of July, 75 paisa for August, and 12 paisa for September, 2014 on account of monthly FCA with a view to provide relief to the consumers.
He said that the power utility during the period of July, August and September, 2014 generated more electricity with cheaper sources. He said that in last few months, fuel prices in the international market witnessed massive decline from $130 per barrel to $80 that put a positive impact on company's cost of power generation.
He said that during the period under review the company also received comparatively more gas from Sui Southern Gas Company (SSGC) as in July it received 200 mmcfd, in August, 225mmcfd while in September it received 210 mmcfd which resulted in considerable reduction in company's cost of power generation. Also the company received cheaper electricity form National Transmission and Dispatch Company (NTDC) because they generated more electricity from hydel sources than thermal. Abu Bakar Usman, a representative of Pasban, on this occasion accused the power of submitting data based on 'fraud', which can easily be challenged.
He deplored that when consumers raised valid objections in light of the statistical data given by the power utility, it miserably failed to even answer the objection. He said that Kunda culture was prevalent in the city not because of consumers but due to the support from some 'black sheep' within the company.
After drastic reduction in oil price, it received cheaper electricity from NTDC which resulted in significant decline of some 17 percent in the KE's cost of generation. He observed that in these circumstances the utility's tariff should have also been reduced by 17 percent. "But it never bother to provide slight relief to the consumers," he added. He also accused Nepra of not taking appropriate actions against the power utility for his anti-consumers actions.
General Secretary KESC Shareholders Association Chaudhry Mazhar said that that the power utility was arbitrarily charging inflated bills, besides carrying out prolonged laodshedding. "This practice by the power utility is not only highly objectionable but tantamount to degrading and humiliating the consumers," he observed. "Why a consumer should receive such inflated bills and why the consumer be compelled to brave prolonged loadshedding when he/she is paying monthly electricity bills timely," he questioned.
A consumer, Anil Mumtaz, alleged that the company was indulged in 'mega financial fraud.'
He asked a question from the power utility official whether each generator of its Bin Qasim Power Plant has its own meter. A KE engineer Mustafa Hussain responded that although each generator did not have its own meter but the KE had its mechanism to measure the power generation and sent out units. On this, Anil further questioned whether it is possible to measure the overall performance of a generator without meter. Reacting to this, a KE senior employee walked out of the meeting, saying that such illogical questions can't be answered.
A member of KESC Labour Union alleged that the K-Electric was still charging 15 paisa per unit from its consumers, which it was allowed to charge in 2011 by Nepra against hiring of some 7604 employees. "But a year later, the power utility fired all the new employee, against whose hiring it was allowed to chare the additional 15 paisa, but it is still charging the additional 15 pasa from the consumers," he added. He termed it as a gross injustice with the consumers. On a complaint, Chairman Nepra asked the KE to submit area wise loadshedding schedule.