ISLAMABAD - AHMAD AHMADANI - Owing to complaints about the illegal amendments and billion rupees worth benefits in the agreement of Karachi Electric Supply Company (KESC), Supreme Court of Pakistan has taken notice and sought respond from the concerned departments till December 24.

Following the application of Transparency International Pakistan dispatched to the apex court, Chief Justice of Pakistan (CJP) Iftikhar Muhammad Chaudhry has asked the National Electric Power Regulatory Authority, Finance Ministry, and Establishment Division to submit their reports on fourteen points respectively in accordance to the copy of notice.

The apex court in its fourteen points has sought the response from the concerned departments till December 24. The court has raised that the government had privatised the KESC in 2005 and the regulatory authority (Nepra) determined multiyear tariff for seven long years. 

The water & power ministry and finance ministry by introducing certain amendments in the KESC agreement during 2009 had extended money-spinning benefits to the company while the regulator jacked up the tariff of the KESC despite the fact that the regulator is not authorised to review KESC tariff prior to 2012. Under these illegal amendments in the company’s agreement, the finance ministry is at presently paying heavy amount worth of Rs66 billion and the ministry had paid worthy amount of Rs168billion from 2009 to this effect due to illegal raise in company’s tariff by Nepra in December 2009.

Supply of 650MW from WAPDA to the KESC on subsidised rates for five long years is contrary to the law so the agreement is illegal because of the fact that company so far remained fail to decrease the losses as it could not generate electricity in accordance to its generation capacity.  Similarly, the company has announced its artificial profit in 2012 as a result to which the value of company’s share increased by 120 per cent within one month. It is to note here that Transparency International Pakistan in its plea has further asked SC to declare the KESC agreement as null and void.