Lashing out at K-Electric, the power distribution company for Karachi, for prolonged electricity outages during severe heatwave this summer, Chairman Senate Mian Raza Rabbani on Thursday said the company was running ‘a state within the state’.
State Minister for Interior Balighur Rehman said that agreements inked with K-Electric in the past were in the interest of the company rather than the consumers.
Concluding a discussion on adjournment motion moved by Senator Taj Haider and others regarding unprecedented loss of lives caused by the summer heatwave coupled with power cuts by KE in Karachi, the minister said the KE has a total capacity of 3,108 MW including 2,385 MW from its own power plants, 650 MW from the national grid System and remaining from IPPs and KANUP.
However, the KE supplied only 2,300-2,400 MW to the consumers during the summer heat, he said. The minister said that under the agreement the KE was bound to increase its ideal capacity besides upgrading the power distribution system.
He said the company upgraded transmission lines of only profit making areas while domestic consumers were totally ignored.
The minister assured the Senate that all issues would be taken up during renewal of power supply contract.
Earlier speaking on the motion, Senator Saeed Ghani said that Karachi witnessed four major break downs in the holy month of Ramazan resulting in deaths of hundreds of people.
He said that the performance of K-Electric has been exposed and its management misled the people. He said that K-Electric has a capacity to generate sufficient electricity and continuously taking 650 MW from the national grid.
However, the K-Electric deliberately was not generating power from its own power plants, he added.
Senator Ghani suggested that the federal government should take over the management of the power company for violating its contract.
Senator Saleem Mandviwalla said the government has 26 per cent share in the company and there were serious disconnection between the K-Electric and the government. He endorsed the viewpoint of Saeed Ghani of taking over the K-Electric management.
Senator Sassui Palijo said that trained and technical workers were laid off and non-trained people were inducted on contract in the company. She said that people were inducted on political basis resulting in inefficiency.
Senator Taj Haider said that performance audit of the company should be carried out. The K-Electric was violating electricity act and under the act connection could only be disconnected after non-payment of three month bills.
He called for appointing technical people in the board with the approval of Sindh government.
Senator Mushahid Hussain Syed said that under the law, K-Electric was bound to carry out performance audit. He said that there was contradiction between the statement of NEPRA Chairman and K-Electric.
He said as per NEPRA report, the K-Electric transmission system does not have the capacity to transmit power to the consumers. But the company claimed that an investment of one billion rupees was made in transmission and distribution system, he added.
Senator Mushahid Hussain said that performance audit should be carried out in order to verify the company’s claims.
Senator Nehal Hashmi said that K-Electric was privatised during a dictatorship regime. A committee of the house should be set up to look into its renewal contract being held in October, he said.
