20000405

KESC buying

power at

inflated rates

RECORDER REPORT

KARACHI: The Karachi Electric Supply Corporation (KESC) is compelled to buy electricity from other sources at a grossly inflated rate that is 76 percent higher than its own generation cost, the corporation's official accounts show.

The purchase cost per standard unit comes to around Rs.2.85 as against KESC's own generation cost of Rs.1.61 per unit. Thus the cost difference stands at Rs.1.23 a unit, the annual accounts of the KESC for the year ended June 1999 reveal.

With its total installed generation capacity of 1,735 mw, the corporation could generate an average 1,259 mw per day.

Its generation facilities in decay, the corporation has to buy from other power generating entities, like Wapda, Kanupp and Pasmic, besides obligatory purchase from the two independent power projects (IPPs) Ñ Gul Ahmed and Tapal Energy. The KESC relies on imported electricity for 40 percent and generates only 60 percent of the total requirements 10.15 million mwh (units).

The cost of 40 percent electricity purchase for the year under review was Rs 11.40 billion as against KESC's own cost of Rs 9.31 billion, to generate 60 percent of the total energy needs of the corporation.

The KESC accounts continue to show deteriorating financial conditions in the year 1998-99. The after-tax losses reached to Rs.7.48 billion as compared with Rs 5.68 billion in 1997-98. The accumulated losses are now touching the figure of Rs 19.32 billion as against Rs.11.84 billion last year.