PM steps in to resolve K-Electric-SSGC row

KARACHI: Prime Minister Shahid Khaqan Abbasi stepped in to resolve the tussle between the K-Electric and Sui South Gas Company (SSGC) on Monday, bringing a possible end to the worst electricity crisis that devastated the country’s financial hub for the last over a month.

“Gas will be supplied as and when needed,” Abbasi told reporters after a meeting of the Cabinet Committee on Energy. The Minister for Power, Awais Leghari, Adviser to prime minister on Finance Miftah Ismail, Minister of State for Power Abid Sher Ali and officials of the K-Electric and SSGC attended the meeting. The government has constituted a committee, headed by Miftah Ismail, to settle the issue of outstanding payments between KE and SSGC.

The prime minister also directed the officials to take the Karachi Water and Sewerage Board, SSGC and K-Electric on board and resolve the issues within 15 days. Abbasi hoped that the water shortage issue would also be resolved after the reduction in gap between the electricity demand and supply.

The KE’s spokesperson confirmed that gas supply from SSGC to KE has been increased to 130 million metric cubic feet/day (mmcfd) from 90 mmcfd. “This has improved the power supply in the city and the situation is expected to normalise once gas supply improves to the required level of 190 mmcfd,” the spokesperson said. “With current increase in gas supply, the industrial zones will be resuming their loadshedding exemption status from tonight (Monday night)."

Similarly, the SSGC’s spokesperson confirmed that the supplies to the power utility were increased to 130 mmcfd, while 60 mmcfd would be supplied out of the imported Re-Gasified Liquefied Natural Gas (RLNG). “These supplies would be restored as per the availability of the imported gas.”

Abbasi said complete eradication of loadshedding is possible after 100 percent recovery of bills is made. “Billing and supply are directly related,” he added. “Everything will turn to normal as soon as these issues are resolved.” Prime Minister Abbasi termed the power outages being faced by consumers who pay their bills ‘unfortunate.’ But, he said the areas with heavy power losses would continue to face electricity loadshedding.

The consumers in Karachi have been suffering up to 18 hours of power outages a day due to the row between KE and SSGC, while even those exempted from electricity loadshedding were also bearing the power unavailability. The industries remained the worst-affected and resorted to protests and threatened to cut production in the wake of rising losses.

The K-Electric has been demanding 190 million metric cubic feet/day of gas from SSGC to run its power plants and to meet consumer demands of 2,700 megawatts. The company used to receive 90mmcfd instead. Since KE was able to generate 2,400MW, the shortfall caused power outages.

The prime minister ruled out plans to take over KE or set up another power utility in Karachi. He further said the KE is complying with the tariff structure of the National Electric Power Regulatory Authority and couldn’t make overbilling. Earlier, the provincial chief minister, in a letter to the prime minister, demanded representation on the boards of SSGC and KE.

On questions about the power shortfall in the country, Abbasi said power generation has outpaced demand, but in areas where power theft or line losses are up to 60 percent, electricity outages are as usual.