KARACHI, Oct 3: The belated announcement of Eid moon sighting had a telling effect on the fragile transmission and distribution network of the Karachi Electric Supply Company that collapsed with a sudden surge in power demand due to aggressive shopping which continued till early hours of the next morning.

The extra high tension line through which the Karachi Nuclear Power Plant supplies 80-megawatt power tripped on the eve of Eid, leaving a vast area of the city in dark.

Besides, the KESC failed to attend to numerous faults caused by tripping during the Eid holidays despite consumers’ repeated attempts to draw the utility’s attention. Apartment residents in different areas were the worst hit. The prolonged power outage also created water shortage in many residential localities. Many consumers complained that each time they lodged complaint on 118 they were simply given a number but no one attended to their problem.

The utility faced a shortage of over 300 megawatts as the extra high tension line transmitting 80-MW power from Kannup to the KESC tripped from the Baldia Circuit on the eve of Eid at around 2am. The problem aggravated because the utility’s new managers deliberately cut down power generation from two of the six units of Bin Qasim Power Plant to save on its fuel cost. In addition, the supply from two independent power producers, Tapal and Gul Ahmad, was cut despite earlier assurances to the government that the management would ensure optimum generation to meet the growing demand.

On a daily average, the utility is facing a minimum shortfall of 300MWs that goes up many times due to functioning of Bin Qasim Thermal Power Station much below its capacity to save furnace oil expenses; frequent tripping of Kannup-KESC extra high tension line; and suspension of power generation at the DCL Co-Gen power plant installed in Defence for maintenance. The DCL Co-Gen power plant that reportedly went off the national grid due to some technical problem in shaft of turbine would resume functioning after Oct 12, sources said.

In order to bridge the gap between demand and supply of electricity, the utility has announced that a 50-MW rental power plant would be fully operational by March 2009. Despite the assurances given by the new managers of the utility, who are reportedly lobbying with the federal government for waiver of a substantial amount of dues, the power generation and supply situation is not so bright.

On the eve of Eid the KESC had claimed it had cleared outstanding dues of Rs3 billion to Wapda and Sui Southern Gas Company. The new management of the power utility had announced on last Tuesday that it had paid Rs1 billion to Wapda, amid continuing row over the disputed outstanding amount. Wapda/ Pepco and the NTDC claim that the KESC owed them Rs65 billion though the latter put the figure around Rs15 billion due to differences over rates.

While only a fraction of the outstanding dues has been cleared it seems that Wapda/ Pepco and the NTDC by increasing the supply without making much hue and cry have somewhat softened their stance on the remaining dues. Sources said M/s Abraaj’s corporate management was using its leverage in the new government to seek a waiver of the outstanding dues to a substantial level, leaving the government to absorb the shortfall.

Before the KESC’s privatization, the government had initiated the Financial Improvement Plan of Rs13.20 billions for rehabilitation of KESC network to turn around the performance of the utility from a losing entity into a profit-making organisation. After completion of its major part, the company became viable for privatisation and the GOP was enabled to attract investors. Some drastic actions were taken in order to privatize KESC in any way, including the reduction of face value of share from Rs10.0 to Rs3.50 thereby reducing the total paid up capital of 13.167 billion shares from Rs131.67 billion to Rs46.08 billion only and waiver of Rs92 billion debts.