HYDERABAD: State Minister for Water and Power Abid Sher Ali has ruled out renewal of the agreement which expired last month with K-Electric for supply of 650 megawatts from the national grid on previous terms and conditions.

Speaking to journalists after chairing a meeting of Hyderabad Electric Supply Company (Hesco) officers at the Sindh Museum on Tuesday, he said the power utility had to clear Rs100 billion dues of the government.

Also read: K-Electric may not get 650MW

Hesco Chief Executive Officer Saleem Jatt and other officers were also present on the occasion.

He said 1,500MW of energy would be added to the system by the coming summer to reduce loadshedding to six hours from last year’s duration of 10 to 12 hours. By 2017 Pakistan would hopefully become a loadshedding free country, he added.

The minister said the prime minister had ordered the ministry of finance to release Rs50 billion for the Neelum-Jhelum power project as well and it would be commissioned by 2016 whereas the Nandipur project would hopefully be ready by May this year.

Lambasting former minister Babar Awan, he alleged that the former had taken Rs40 million as a bribe and this case was pending with the National Accountability Bureau, thus delaying its commissioning for two years.

An amount of Rs15 billion mark-up was paid on the project while R5 billion was spent on its rehabilitation. The government had incurred a loss of Rs113 billion in it, he added.

He devoted most part of his press conference to the K-Electric, saying that the power utility owed Rs54 billion to the Sui Southern Gas Company, Rs32 billion to the National Transmission and Dispatch Company, Rs3 billion to the Pakistan State Oil and Rs1 billion to Rs2 billion to the PTV. Thus millions of rupees were to be cleared by the K-Electric now. “Its previous contract will not be renewed on old conditions. The rate will have to be rationalised through Nepra,” he said.

He said the K-Electric’s total de-rated generation capacity came to 1,700MW to 2,000MW, including 250MW to 300MW of their independent power producers. The K-Electric had claimed that it would double their generation and reduce line losses, but they did not do it. It kept complaining that they were not provided gas by the SSGC, which was ridiculous considering the fact that their dues were piling. He, however, made it clear that even 1MW shortfall in power supply to Karachi would not take place.

Mr Abid said it was the government that was subsidizing unit for consumers as the government was considering bridging the gap in cost per unit production, but the K-Electric management earned profit and transferred capital abroad without increasing their generation. The NTDC and Nepra had served notices to it and all required formalities would be met to recover dues, he said. He blamed that the K-Electric misguided the people of Karachi by distorting facts and denied that any political influence was at work.

About the worker union’s Feb 18 protest against privatisation outside the parliament, he said that no one was rendered jobless and alternative jobs were provided in the Sharif government, but the government cherished the interests of 200 million people. He said the union should avoid protesting and change its attitude. Had they changed their attitude such steps would not have been taken, he said. He asked for how long the government would keep pumping Rs350 billion into subsidy component which was otherwise enough to establish a hydel project.

He told a questioner that the government had rectified problems in the power system and that’s why after two blackouts in the country, further such incidents were not witnessed despite subversive activities. He said that only the area where such attacks were carried out remained without power supply.

He said officers were asked to improve recovery of receivables. The Sindh government had started reconciling bills regarding the Water and Sanitation Agency and paid Rs2 billion, though Rs69 billion was still outstanding against it. Eighty per cent bills had been reconciled, he said.

As per the apex court’s directives, load management was being planned on a parity basis with urban areas facing six to seven hours and rural areas 8 to 9 hours, he said. He said he had asked officers to audit bills and warned against injustices against power consumers in terms of billings.

Published in Dawn, February 18th, 2015

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