The Senate Standing Committee on Water and Power on Friday was apprised that the K-Electric (KE) generated maximum electricity during June 18 to 24, but the obsolete distribution system could not sustain it resulting in power breakdowns and load shedding.
The committee which met here with Iqbal Zafar Jhagra in the chair reviewed generation capacity of the KE, demand during the recent crisis, onward transmission to the consumers, agreement between the KE and government, performance standards of the company and violation.
National Electric Power Regulatory Authority (NEPRA) Chairman Tariq Pervaiz Saddozai informed the committee that the K-Electric pumped average 2700 MW against the demand of 3000 MW in the system during the recent crisis in Karachi. However, the distribution system could not transmit power to the consumers.
Power generation remained main focus of the KE while the distribution system could not transmit power to the consumers resulting in difficulties to the consumers during first five days of the holy month of Ramzan. He said that power supply to some areas also remained suspended for 24 to 96 hours during the recent crisis.
He said the KE generated average 1550 MW from its own plants and got 928 MW from independent power producers (IPPs) including 650 MW from national grid station. The company’s plants utilisation remained 87 per cent during the crisis, he added.
However, Tariq said the plants utilization capacity during the last three years remained 46 per cent and the NEPRA had also issued show-cause notice to the KE.
Regarding agreement, the NEPRA chief told the committee that supply of 650 MW from national grid system to the KE had already expired in January. Under the agreement, the KE electric was bound to generate electricity from its own resources and then the government would supply remaining 650 MW, he said.
He said that 650 MW was provided to the KE on basket rate of Rs 9 per unit. He said initially it was decided during agreement that electricity to the KE would be provided on marginal rate. However, the agreement was reviewed in 2009 and it was decided to provide electricity at other power distribution companies (DISCOs) rate, which resulted in financial implication of Rs 31 billion to the government.
Elaborating it, the NEPRA chairman said that the NTDC supplied electricity worth Rs 112 billion to the KE but they were paid only Rs 44 billion. He said the case was already pending before the court and the NEPRA was restrained from passing any adverse order in this regard.
Tariq informed the committee that the KE had also no formal agreement of gas supply to its power plants and the authority had repeatedly asked the KE to ink agreement in this regard.
CEO KE Tayyab Tareen informed the committee that they were supplying 2600 MW to the consumers. He said the company made $1.2 billion investment in power generation and distribution system.
He said as per the policy, the industrial sector had already been exempted from power load shedding. However, low load management was also being carried out in industrial areas in order to ensure zero load shedding during Iftar and Sehari.
He said most efficient four new power plants having 1000 MW capacity were set up during the last three years. The CEO said that new grid stations and new feeders were also set up to ensure smooth supply. He said investment was also being carried out to strengthen the distribution system.
He said sudden rise in level of mercury to 46 C from 37 C had resulted in problems in some pockets.
Tayyab told that only 5 to 7 hours load shedding was being carried out despite high losses. He said during the recent crisis, some faults were removed shortly but in some areas, company’s teams faced problems due to people’s resistance and attacks.
Mukhtar Ahmed Dhamrah suggested that a special committee should be set up to investigate the issue thoroughly.
Taj Haider said there was no no-go area in Karachi and connections of all defaulters should be disconnected. He also suggested that bureaucrats should be replaced with technical people in the KE Board of Directors.
Nisar Khan said in the past official of the KE were summoned but they did not bother to attend the meeting. He said those five people should be penalised who inked the revised agreement with the KE. He termed the KE a white elephant.
Earlier, Additional Secretary Water and Power Umer Rasul informed the committee that a complaint cell had also been set up at the ministry level to keep check on all DISCOs. Zafar Iqbal said power supply to the defaulters should be disconnected rather than closing all feeders.
He said relief should be given to those consumers who regularly pay their bills.
