Karachi: Karachi Electric Supply Company has stated, that after much deliberation and in the larger interest of the public, it has formulated a new power supply policy for its ‘captive power’ consumers. All industrial units that are generating their own power through Gas and do not require KESC for their power needs and have merely kept their connections as a back-up, are to be disconnected.
According to a KESC statement this decision has been taken keeping in view the optimal rationalization of power distribution and electricity supply will be prioritized for those customers who are need of it. In the city of Karachi there are about 600 private industrial units that are fulfilling their power needs through gas based self-generation (captive power’s).
These, self power generating, private industrial units are being provided natural gas on a priority level higher than KESC, in violation of the Natural Gas Policy 2005. Infect cumulatively these private commercial entities are being supplied gas, more than the quantum of what is being supplied to the power producing public utility, that is serving the needs of 20 million inhabitants and countless industries of the metropolitan.
Hence in faze one of this policies, KESC has served notices to 250 such industrial consumers, who have sanctioned their load from the utility but are utilizing less than 25% of that load. Hence making perfect sense to take back the excess and un-utilized load from these consumers and use the same to provide new connections or load enhancements to those applicants desirous of availing KESC’s services but have had to queue up due to non-availability of the same load.
All the same KESC has clarified, that it is well in position and willing to provide ‘uninterrupted power supply’ to all those ‘captive power industrial units’ which decide to switch back to KESC for their power needs, rather than use gas to produce their own power.
In a fair over view of the situation, if the same amount of gas that is being provided to these 600 private captive powers, is diverted to KESC (being a public utility), not only will it result in enhanced power generation, but will also lead to a reduction in the power tariff brought about by an incremental usage of a low cost fuel – natural gas.
Important to note is that, 560 MW of additional power generation is soon to be available with KESC – vide its most efficient, new, state of the art combined cycle Bin Qasim 2 power plant which is in the final stages of commissioning, setup at a cost of USD 450 million but requiring an additional 130mmcfd of gas.
The decision is up to the policy makers of the government to divert this gas supply from captive powers to KESC, for the benefit of the 20 million residents of Karachi, which will indeed be a decision of great magnanimity and wisdom in upholding the supremacy of public interest over private.
For more information, contact:
Assistant Manager, Media and PR
Karachi Electric Supply Company Limited (KESC)
2nd Floor, State Life Building No 11, Abdullah Haroon Road, Saddar, Karachi
Tel: +9221 9920 7163
Cell: +92346 822 3641