Despite tall claims by government to exempt Karachi’s industrial sector from prolonged load shedding, industries continued facing eight hour outages. The decision made at Governor House, is yet to be implemented by government. Under the decision via which, the sector was to be without any load shedding through supply of additional gas to Karachi Electric Supply Company (KESC), industrial units remained under dark during scheduled outages in three cycles.
An agreement was signed between KESC, Sui Southern Gas Company (SSGC) and Karachi Chamber of Commerce and Industry (KCCI) on 26th November at a meeting held at Governor House to resolve electricity crisis faced by city’s industries, which almost closed the prolonged power breakdowns. The meeting was chaired by Governor, and co-chaired by Dr Asim, Minister of Petroleum and Natural Resources.
According to official sources in KESC, as soon as gas supply to KESC is increased to the level agreed and committed by SSGC (180mmcfd) in the agreement, industrial zones of the city will once again be exempted from load shedding as per standard policy of KESC. However, as yet, there has been no increase in gas supply by SSGC, and KESC is still receiving gas below 120 MMCFD. This has been the case since the past fortnight, which is the primary reason for current power crisis in the city, especially in industrial zones. As soon as agreed level of 180mmcfd of gas is received from SSGC, KESC will not only implement ‘zero load shedding’ programme for industries, but load shedding in residential and commercial areas of the city will also be subsequently reduced.
According to an available copy of agreement signed between three parties, following decisions with their consent were taken in the meeting:
1. SSGC would supply 180 MMCFI gas to KESC with immediate effect with following conditions:
- Rs2 billion will be paid on Tuesday (November 29) by KESC,
- Rs2.4 billion (November 2011 bill) and another Rs600 million will be paid in December 2011, and
- KESC shall pay Rs300 million to clear the past arrears over and above the current bill of December 2011 from January 2012 on time.
2. CNG would be curtailed for 2 days in a week.
3. Complete industries would close down for next four Sundays (on a 100 per cent basis) till the end of December 2011. Situation is expected to normalise from 1st January, 2012 as Kunar Pasaki gas field is expected to come online by end of December 2011.
4. Fertiliser supply would be initially curtailed to 48 MMCFD and completely disconnected in December 2011 and January 2012.
5. It was decided that KESC shall prevent load shedding in industrial areas and SSGC shall also ensure 180 MMCFD to KESC. Both companies will prevent load shedding in industries and curtail KESC’s gas till meeting is held between KCCI, SSGC and KESC under chairmanship of Governor Sindh within 24 hours.
6. Governor Sindh and Minister Petroleum will get provincial and federal government to pay Rs15 billion owed by Karachi Water and Sewerage Board (KWSB) to KESC directly to SSGC. It is the responsibility of Ministry of Finance to make payment and adjustment as per Implementation Agreement.
7. KESC will conduct massive disconnection drives against defaulters without any exemption.
8. KWSB and Provincial Government will ensure timely payment of electricity dues.
