KESC shrinking away from SSGC security deposit | Pakistan Today

KESC shrinking away from SSGC security deposit

KARACHI – Karachi Electric Supply Company (KESC) which has cried foul over the limited supply of gas from Sui Southern Gas Company (SSGC) is deliberately avoiding an agreement for purchase of gas in a bid to dodge security deposits of billions of rupees. The KESC is reluctant to honour a security deposit valued at Rs 10 billion to SSGC, a mandatory requirement for a consumer to receive utility services, sources indicated.
While the privately run public utility company is lambasting the SSGC for supplying limited gas supply against an agreed quota, sources in SSGC have rejected KESC’s claim saying that there was no such agreement. Speaking to Pakistan Today on Tuesday, SSGC Senior General Manger Customer and Engineering Services Zuhair Siddiqui, said though the gas company has requested the agreement, KESC has been unwilling to commit to such an agreement. Simultaneously, the electricity company is approaching officials in Islamabad to kick-start enhanced gas supply.
As every customer needs to submit security deposits prior to receiving gas supply or electricity, the KESC has to pay around Rs 10 billion in order to get the smooth supply of gas, he added.
Interestingly, the KESC, which had recently applied for enhancement of security deposits in the National Electric Regulatory Authority (NEPRA), was reluctant to honour its dues to the SSGC.
Both SSGC and KESC are charging their consumers of security deposits worth at least three months’ supply. SSGC, despite the gas shortages, he said, was committing almost 80 MMCFD to KESC, which was a lower amount than over 150 MMCFD supplied to the power company in the summer.
He claimed that the SSGC was giving preference to KESC in terms of supply of gas, while the gas company supplied gas to the power company. This could have been diverted to other customers, he pointed out. At the same time, SSGC is incurring massive revenue losses in terms of unaccounted-for-gas (UFG) while supplying the gas to millions of other consumers, he added. In response to a query, Zuhair said that the KESC had made the payment for the month of November; under an agreement, the company was bound to pay at least the month’s dues owed to SSGC.
To a question, he stressed that the allocation of gas by the authorities in Islamabad was not an agreement but temporary arrangements made for the company’s requirements to minimise load-shedding across the metropolis. After the court’s stay order over scheduled load-shedding of gas to CNG stations, he stated that not only were general consumers of SSGC facing the shortage and lower pressure of gas but the supply to KESC was also reduced. Zuhair went on to say that the KESC was yet to clear the over Rs 23 billion dues of SSGC.

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