20000325

Wapda, KESC ask

govt to share heavy

fuel bill burden

RECORDER REPORT

KARACHI: The twin power utilities, Wapda and KESC have pleaded with the federal government to share the huge burden of billions of rupees bill on account of their fuel consumption due to perpetual rise in its price or, alternatively, they may be allowed to correspondingly adjust power tariff for consumers.

Lt General Zulfiqar Ali Khan, who jointly holds the chairmanship of Water and Power Development Authority (Wapda) and Karachi Electric Supply Corporation (KESC), told a press conference on Friday that since July last, prices of furnace oil had gone up significantly from Rs 6070 to Rs 8800 per tonne. In addition to the cost,15 percent GST has been levied during this period.

He said that with the recent increase in fuel oil prices, Wapda would suffer losses of Rs 2.3 billion per year whereas KESC's losses, being totally dependent on thermal power generation, would be more than Rs 7 billion. He, however, added that effecting increase in the tariff would again create anomaly which have been done away with by the present management by rationalising tariff for the several segments of the consumers.

Highlighting the salient features of the current calendar year, the General said the recovery rate of Wapda's bill had improved to 99.4 percent, from 79.4 percent in 1998. The recoverable amount for the year 1999 had been Rs 130.4 billion, against Rs 99.4 billion in the previous year.

Zulfiqar, nonetheless, showed his dissatisfaction of the recovery rate which he said should be 100 percent.

Another success pertained to minimising transmission and distribution losses which had been brought down by 10 percent, from 42 percent to 32 percent, he said.

He said that outstanding amount against government agencies, Fata, AJK, and Balochistan's tubewell consumers stood at around Rs 50 billion. The recovery rate from these agencies remained only 10.5 percent. Nevertheless, he conceded that there had been excessive billing cases in the past in provincial government's power bills. A committee, under the finance ministry had been commissioned to address the bill clearance issues, he added.

He said that a liberalised package for the agriculture and industrial sectors had been offered by Wapda. Accordingly, payment of electricity bill had been deferred up to May without extra charges for the tubewells. The disconnected tubewells will be reconnected free of cost by the Wapda within one year of disconnection. Power tariff had also been reduced by 215 percent up to May 31, which would facilitate the growers of wheat crop.

For the industries, especially steel mills, he said reconnection to steel melting industries would be made on 10 percent down payment of arrears and balance could be paid in 24 monthly instalments whereas other industries could pay in 12 instalments. Industries have also been offered 10 percent rebate in tariff on increase in consumption to the extent of 25 percent or more. In addition, 10 percent rebate would also be offered on advance payments of bill, he said.

Regarding KESC, the chairman said that "it is still in financial crisis". However, he said, the management was committed to steer the corporation.

The managing director of KESC, who was also present on the occasion, told the newsmen that the corproation had got Rs 5 billion short-term loan rolled over. The power company was engaged in negotiating rescheduling of its borrowing from Habib Bank, amounting to Rs 2.5 billion, whereas it had finalised the negotiation with ABN-Amro and Citibank. He said that it had not defaulted on any payment, whether local or foreign.

The chairman said the load capacity was expected to increase in KESC system by six percent during the upcoming season. As against total 1780 mw peak demand, the load may go to 1900 mw this year. However, Zulfiqar said the management was taking steps to meet this demand. Recently, it has laid 140 km transmission lines and brought about improvement in the other infrastructural facilities.