KARACHI – The Karachi Electric Supply Company (KESC) warned its consumers on Thursday that the duration of power load shedding could be increased to up to 14 hours.
The warning was issued after the Sui Southern Gas Company (SSGC) informed the KESC that gas supply would be reduced to around 80mmcfd from next week because the Bhit Shah gas field would be shut down for maintenance.
Addressing the media on ‘Status and Impact of Furnace Oil on Consumer Tariff’ at the KESC head office, KESC Chief Financial Officer Tayyab Tareen said that the city would be facing 13 to 14 hours of power outages if the company is not supplied around 200mmcfd.
Besides, Tareen said, the industries that were previously exempted from load shedding would be facing between eight to 10 hours of power outages after the sudden reduction in gas supply.
“We have received a letter from the SSGC, informing us that only 80mmcfd would be available for the power company during the shutdown of its largest gas field,” he added.
He said that the short supply of gas against the allocation of 276mmcfd would affect the power generating capacity of the KESC, causing more power outages during the summer.
The gas supply to the power company was reduced by 39.5 percent against the allocation during 2010 that has impacted the cash flow by around Rs 22.9 billion, he added.
Besides, Tareen said, due to the shortage of gas, the consumption of furnace oil, which is 3.7 times more expensive, was increased to 56 percent or Rs 34.03 billion in 2010 against the Rs 18.16 billion worth oil consumed in 2009. As the company is receiving around 133mmcfd against the allocation, the reduction of around 143mmcfd gas has an impact of Rs 5.03 per kWh on the consumer, he added. He said that with the reduction in gas supply, the tariff of the company was also increasing due to the jump in the burning of furnace oil.
Responding to a question, he said that the gas purchase agreement with the SSGC is not being signed as the gas company is not ensuring fixed and uninterrupted gas supply to the KESC. He claimed that the dues the power company owes the gas company are not more than Rs 19 billion, whereas the KESC has also huge receivables from various consumers.
In response to another query, he said that discussions were under way with the authorities concerned at various levels, and that the expected impact of further reduction in gas supply from next week would cause more load shedding in the city. It is pertinent to mention here that Tareen refused to talk on the issue of KESC’s 4,000 employees who are likely to be sacked again through a new scheme.
