650 megawatts supply from national grid: Karachi to face big cut as PML-N seeks to exact 'revenge'

Indicating that Karachi, the country's financial capital and economic hub, is going to face a major cut in power supply from the national grid, Minister for Water and Power Khawaja Asif said on Monday that the new pact with K-Electric - a private entity - will follow the Supreme Court's verdict of equitable loadshedding from Karachi to Peshawar verbatim. It may be recalled that Pakistan Muslim League-Nawaz (PML-N) did not fare well in Sindh in the 2013 and other general elections.
Khawaja Asif was addressing a press conference on the reasons behind the recent massive electricity breakdown and measures for its rectification, supply of furnace oil for power generation and future prospects of Power Purchase Agreement (PPA) that expired on January 25 with K-Electric.
The minister said there is no delay in the new agreement with K-Electric, pointing out that it's not a simple thing but a complex agreement. The situation will remain until the new agreement is finalised between the government and K-Electric. "Government is neither under pressure from any political party or the UAE. Agreement with K-Electric has expired but the government has not disconnected supply. The government will contact the entity for a new agreement on new terms and conditions," he added.
He said Council of Common Interests (CCI) - a Constitutional body - duly represented by the Federation and Provinces approved supply of 350 MW electricity to KESC (now K-Electric) in 2011. However, the then government increased the K-Electric quota to 650 MW. The agreement was challenged in Sindh High Court (SHC) which granted a stay order, which continued for three years.
He said K-Electric's power generation capacity will be kept in mind in the new agreement. The Minister maintained that it is not fair that K-Electric shuts down its expensive furnace oil fired generating plants while accessing cheap electricity from the national grid. He said load shedding should be shared equally by all Pakistanis. Talking about the Saturday black-out, the Minister said that the power system was disrupted due to sabotage and it has been restored. Regarding power supply, he said that the PML-N government's overarching objective is to ensure zero load shedding to industrial sector in the next two to three days. A six-hour load-shedding will be carried out in urban areas and eight hours in rural areas. He said steps have been taken to enhance security of power installations. In this regard, the Balochistan government will be directed to remain vigilant in highly sensitive areas like Nasirabad.
An inquiry has also been ordered into the power breakdown which will submit its report within 48 hours. He said, technical help has been sought from China National Grid and USAID to avert such a situation in future and isolate the affected parts of transmission line from the other system. Teams of China National Grid and the USAID are expected in a few days.
Commenting on power supply situation, the Minister said that hydel power generation is gradually increasing after reopening of canals. He said outflows from Tarbela and Mangla will bring 6000 MW of electricity to the system in the next 10 to 12 days. Khawaja Asif acknowledged that the power crisis exists and will continue for the next two to three years and claimed that it would end in 2017. However, he ruled out any power crisis due to shortage of furnace oil. He said, expensive thermal power plants are run at peak hours to generate maximum electricity for consumers.
"We have arranged furnace oil from 54 other companies, including Byco and Parco refineries, to meet power plants fuel requirements," he stated. He said twelve cargoes have been booked through Pakistan State Oil (PSO) which will start arriving anytime soon (yesterday or today). Khawaja Asif said that the Ministry of Water and Power is current on payment to PSO but it owes around Rs 170 billion to PSO and efforts are being made to pay off the amount in instalments.
Commenting on privatisation of Discos, the Minister said the PML (N) government is pursuing the policy approved and implemented by the PPP and MQM coalition government. He said PPP-MQM coalition government privatised Kapco and 12 per cent shares of PTC in 1993 and 1997. The incumbent government has not included any new transaction in its privatisation agenda. "We are trying to implement joint decisions of PPP-MQM and also facing implications of their wrong decisions," Khawaja said. In reply to another question, he said the government is not increasing but decreasing power tariff through a monthly fuel adjustment mechanism. Minister of State for Water and Power, Chaudhry Abid Sher Ali and Joint Secretary, Zargham Ishaq Khan were also present at the press conference.