PM resolves K-Electric-SSGC row

KARACHI: Prime Minister Shahid Khaqan Abbasi stepped in to resolve the issue between K-Electric and Sui South Gas Company (SSGC) on Monday, bringing a possible end to the worst electricity crisis has 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 Cabinet Committee on Energy. Minister for Power Awais Leghari, Adviser to PM on Finance Miftah Ismail, Minister of State for Power Abid Sher Ali and officials of K-Electric and SSGC attended the meeting.

The government has constituted a committee, headed by Miftah Ismail, to settle outstanding payment issues between KE and SSGC. Prime Minister directed officials to take Karachi Water and Sewerage Board, SSGC and K-Electric on board and resolve the issues within 15 days.

PM Abbasi hoped that water shortage issue would also be resolved after reduction in gap between electricity demand and supply. 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 situation is expected to normalise once gas supply improves to the required level of 190 mmcfd,” the spokesperson said in a statement. “With current increase in gas supply, industrial zones will be resuming their load-shed exempt status from tonight (Monday night).”

A SSGC’s spokesperson said supplies to the power utility was 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 in bills recovery is made. “Billing and supply are directly related,” he added. “Everything will turn to normal as soon as these issues are resolved.”

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

Prime Minister Abbasi termed the power outage being faced by consumers who pay their bills ‘unfortunate.’ But, he said the areas with heavy power losses would continue to face electricity loadshedding.

K-Electric has been demanding 190 million metric cubic feet/day of gas from SSGC to run its power plants and to meet consumer demand of 2,700 megawatts. The company used to receive 90mmcfd instead. Since KE was able to generate 2,400MW and 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 KE is complying with tariff structure of National Electric Power Regulatory Authority (Nepra) and couldn’t make overbillings.

Earlier, the provincial chief minister, in a letter to the prime minister, demanded representation on the boards of SSGC and KE.

On questions about 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 usual.