The Sindh High Court (SHC) upheld on Tuesday the right of Karachi Electric Supply Company (KESC) to disconnect electricity to industrial consumers having their own captive power plants.
According to the KESC, the industries had changed their purpose of electricity connection by shifting their power connections to standby mode.
SHC’s Justice Munib Akhtar delivered the judgment on the case.
KESC was represented by Barrister Abid S Zuberi and Barrister Ayan M Memon and the litigating industries were represented by Arshad Tayebaly and Asim Mansoor Khan.
The judge reviewed the notices sent by KESC, issued pursuant to Section 20 of the Electricity Act, 1910 read together with Chapter 8 and 14 of the Consumer Service Manual issued by NEPRA.
The notices reflected a genuine problem being faced by KESC in relation to having to provide infrastructure in load management facilities where irregular load consumption was rampant due to the predominant use by industrial units of captive gas power generation to fulfil their requirements.
In view of non-utilisation of sanctioned load and change of purpose, the KESC was constrained to notify these units that they were at risk of disconnection as such conduct was in violation of law.
The KESC claimed that the court further noted that the power company was facing a natural gas shortage since captive power producers were now utilising more gas capacity than was available with KESC.
A KESC spokesman pointed out that KESC’s flagship and most efficient new 560MW Bin Qasim Plant has been tested on full load; however, the committed 130MMCFD gas for the plant has not yet been supplied.
According to the company, a handful of industries are enjoying the luxury of regular gas supply for captive power generation, the gas requirement of a public utility serving 20 million ordinary citizens of Karachi is being neglected despite firm written commitments. The inevitable result is extra load shedding and continuous increase in electricity tariff as shortfall in gas supply is met by burning additional furnace oil that is four times more expensive.
It is worth to mention that the government had committed gas supply to KESC for its $450 million, 560MW projects that KESC is about to commission in line with its commitment.
The KESC again asked the government to fulfil its contractual obligations and supply additional 130MMCFD gas to the newly-installed plant in larger interest of the public.
Meanwhile, industry sources claimed that they would appeal against the judgment.
There are already many cases against the company’s stance against the regular industrial consumers in the courts.
