War of words intensifies over power crisis in Karachi

22 Apr, 2018

A war of words has intensified between federal and Sindh governments over current electricity crisis in Karachi due to a reduction in gas supply to Karachi Electric. Prime Minister, Shahid Khaqan Abbasi has convened a high-level meeting in Karachi on Monday (tomorrow) to sort out liabilities issue which led to a massive reduction in gas supply to the city.
Minister for Power, Sardar Awais Ahmad Khan Leghari has written a letter to Chief Minister Sindh, Murad Ali Shah, saying that Government of Pakistan through Ministry of Energy (Power Division) has made an all-out effort to handle the energy crises in the country through various initiatives including generation addition to bridge demand supply gap, sustained liquidity for the power sector, infrastructure enhancement for efficient delivery of power to the end consumer, etc.
He further stated that Karachi being the hub of the business activity, industrial development and the largest city of Pakistan has always remained a key focus for the Government of Pakistan. Karachi Electric (KE) responsible for power supply to the city of Karachi has also been supported by the Government of Pakistan to maintain and sustain efficient generation and distribution to the city of Karachi.
"KE being a private entity is operating the supply of electricity to Karachi on commercial basis. The recent crises being faced in Karachi in the form of load shedding is the result of mismanagement, system inefficiencies and commercial mishandling by KE," Leghari wrote adding that this has been very clearly highlighted by Nepra in its report on current energy crises in Karachi.
The minister stated that the report very clearly indicates that KE has failed to bring its idle generation capacity online on the pretext of non-supply of gas by SSGC despite the fact that their shutdown plants could have run on alternate fuel.
Leghari who held a detailed meeting with the KE team on Friday maintained that non-supply of gas by SSGCL to KE cannot just be attributed to non-payment by KE to SSGC or absence of GSA. The outstanding liabilities of provincial Government Departments like KWSB to the tune of Rs 32 billion have also played a pivotal role in incapacitated rendering from making payments to SSGC.
"We would request that while we are expediting resolution of issues between SSGC and KE, the provincial Government should, realize its responsibilities and ensure that one of its departments does not default on the energy payments to the utility company so that this issue is resolved in an expeditious manner," he said, assuring that the Government of Pakistan would continue support, to the extent of its responsibility, for ensuring consistent power supplies to Karachi.
Chief Minister Sindh Murad Ali Shah has also written a letter to Prime Minister, Shahid Khaqan Abbasi, saying that if this reminder fails to wake up the federal government to the plight of people of Sindh and fails to bring an urgent remedial response from it, he will raise the KE issue strongly in the meetings of National Economic Council (NEC) and Council of Common Interests (CCI) scheduled next week and will not participate in discussion on any other agenda item unless a decision is made on this issue to the satisfaction of the justified demand of people of Sindh.

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