KARACHI - Karachi Electric Supply Company (KESC) has rejected the statement of Federal Minister for Water and Power Abid Sher Ali for incorrectly accusing KESC of violating power purchase agreement with NTDC.

According to spokesman of KESC, such mistaken comments not only affected the credibility of the power utility in the eyes of its stakeholders, but would also cast adverse impact over the country’s prospects of attracting foreign investment.

While revealing the relevant fiscal and power receiving data, KESC made it clear that there had been no dispute of payment with NTDC as wrongly claimed by the Minister. KESC had purchased electricity worth Rs 223 billion from NTDC since September 2008 while it had paid to NTDC an amount of Rs 226 billion which included payment of arrears as per agreement.

The KESC said that any unilateral action to disconnect NTDC power supply to Karachi as stated by the Minister and earlier by National Power Control Centre through its letter would be incorrect and contrary to law. It was not permissible under the bilateral Power Purchase Agreement signed between NTDC and KESC in 2010, for a period of 5 years. The figures provided by National Power Control Centre of NTDC in its “notice” blaming KESC of receiving power supply in excess to the agreed 650 MWs were incorrect and suffered from material defects.

The power utility pointed out that the Power Purchase Agreement as a whole protected KESC’s right to receive agreed 650 MW and therefore all other allegations and assertions made by the Minister or the NTDC were without substance and rejected by the power utility.

It was also worth mentioning that the issue of KESC’s use of its capacity had already been taken up by the Supreme Court in its Human Rights Case No. 14392 of 2013 – where KESC had duly responded to allegations and assertions of NTDC, Federation of Pakistan and NEPRA.

KESC maintained that the contents of the letter from NTDC were not maintainable as a matter of law or facts and further constituted contempt of court of binding stay orders in the field passed by the Sindh High Court in 2012 in which NTDC, KESC, Federation of Pakistan and NEPRA were all co-respondents and co-defendants. KESC invited the representatives of the Ministry of Water and Power or the NTDC to visit its power supply network and resolve any confusion with regard to the readings.

KESC demanded of the Minister of State and NTDC to withdraw the inaccurate allegations against the power utility and to avoid being in contempt of court and any unnecessary consequences. KESC reiterated that it was fully compliant with the provisions of Power Purchase Agreement and in fact, if NTDC billing records were checked it would be apparent that KESC’s monthly billing from NTDC in July 2013 was of 615 MW, August 2013 was of 603 MW and 632 MWs in September 2013.

KESC also urged the State Minister to act in accordance with law as well as the binding provisions of the Power Purchase Agreement. KESC reminded the State Minister that the utility served more than 20 million consumers of not only Karachi City but also those spread across 6500 square kilometers stretching from Gharo to Uthal, Bela, Vinder, Lasbela and Hub industrial zones in Balochistan. KESC pointed out that any unilateral action by NTDC to disconnect KESC from the national grid would have serious consequences and the same would be solely at his own risk as to consequences, including any law and order situation arising because of acute power shortfall.