Standby mode: KESC's right to disconnect supply to industrial units upheld

18 Apr, 2012

In a judgement on several injunction applications, Justice Munib Akhtar of the Sindh High Court upheld KESC's intrinsic right to disconnect industrial consumers who changed their purposes and shifted KESC connections to standby mode. According to a press release, KESC was represented by Barrister Abid S Zuberi and Barrister Ayan M Memon, while Arshad Tayebaly and Asim Mansoor Khan represented litigating industries.
The learned judge reviewed notices sent by KESC issued pursuant to Section 20 of the Electricity Act of 1910 read together with Chapter 8 and 14 of the Consumer Service Manual issued by Nepra. These notices reflected a genuine problem being faced by KESC in relation to having to provide infrastructure in load-management facilities where irregular load consumption was rampant because of predominant use of captive gas-powered generation by industrial units to fulfil their needs.
In view of non-utilisation of the sanctioned load and change of purpose, KESC was constrained to notify these units that they faced disconnections as such conduct was in violation of law. The high court also noted that KESC itself was facing a shortage of natural gas supply since captive power producers were now utilising more gas capacity than was available with KESC.
A KESC spokesman pointed out that KESC's flagship and most efficient new 560-megawatt Bin Qasim plant had been tested on full load. However, he said, the committed 130 MMCFD gas for this plant had not yet been supplied. "It is ironic that while a handful of industries are enjoying the luxury of regular gas supply for captive power generation, the gas requirement of a Public utility serving 20 million ordinary citizens of Karachi is being neglected despite firm written commitments. The inevitable result is extra load shedding and continuous increase in electricity tariff as shortfall in gas supply is met by burning additional furnace oil that is four times more expensive," according to KESC's spokesman.
The government had committed a guaranteed gas supply to KESC for its $450 million, 560MW project which KESC was about to commission in line with its commitment. KESC again urged the government to fulfil its contractual obligations and supply additional 130 MMCFD gas to the newly-installed plant in the larger interest of the common man.-PR

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