KARACHI: Karachites would face further load shedding as a power generating unit of Karachi Electric Supply Company (KESC) has been closed for, what the sources said, burning of furnace oil of “below specification”, supplied by a private oil company.
KESC is relying on a private oil supplying company ‘Byco’ to meet its additional fuel needs. The furnace oil supplied by the company, sources claimed, was not up to standard, causing the closure of a unit of KESC at Korangi. Due to the low quality of fuel, the furnace oil supplied by the oil company was being burnt more while producing less heat, sources claimed.
Though KESC is purchasing a limited quantity of oil from Pakistan State Oil (PSO), as per an agreement signed by the two parties, the privately run public utility was purchasing the fuel from Byco, which is also chaired by the KESC’s Chief Executive Officer(CEO).
Interestingly, sources said, Abraaj Capital, a Dubai based company which holds the management of KESC, is also the major shareholder of Byco. Despite of closure of its unit at Korangi Thermal Power Station (KTPS) the management of KESC was purchasing the fuel from the oil company, which ultimately favors Abraaj Capital.
Such tactics, from what the sources said, would further indebt KESC which already owed billions of rupees to different banks and stakeholders. After the closure of one unit at KTPS and another at Bin Qasim Power Plant, which was shut down for maintenance, the gap between demand and supply of power in the city has further widened, they said.
The closure of the Bin Qasim plant, a unit of KTPS and Defence Cogan Desalination Plant, has caused a short fall of 400 MW in economic hub, causing four to six hours of load shedding.
