KESC to collect Rs 2b thru 30pc tariff-hike

KARACHI - The new KESC management intends to generate additional revenue about Rs 2 billion from the consumers by increasing the power tariff up to 30 per cent to be imposed in the form of electricity bills from September. The 30 per cent increase in power-tariff means a monthly additional revenue of around one billion rupees. As the KESC would collect 30 per cent increase for two months, September and October, it would easily mop up Rs 2 billion worth extra revenue without doing any service to its consumers, sources told The Nation on Thursday. Under the circumstances, when consumer will get their bills at the end of this month, the arrears of the last month of September will also be included in their power bills. It may be recalled here that the NEPRA has allowed KESC to increase tariff rates up to 30 per cent. But at the time of privatisation, it was agreed that the company would not increase the tariff during the next seven years. The new management delayed its take-over till the government and NEPRA allowed the company to hike tariff rates, said the source. For this purpose the company had also tried its best to make the lives of citizens more miserable. It is pertinent to mention here that KESC has the annual income of around Rs 36 billion making the monthly amount up to Rs 3 to 4 billion. Now, after the 30 per cent tariff-hike, its revenue will be increased tremendously. This opens a new task for the new management regarding its expenditures on the generation of electricity. It is ironic that despite a lot of assurances in the past from the government and the company, the situation is not satisfactory. "The situation is not impressive as the claim made by the company seems to be fake that the amount of increment is 30 per cent. On the contrary, this amount will reach up to 40 to 50 per cent hike in the bill as the taxes on the electricity consumption will be applied on the billing amount", said an expert. It is inquisitive that if the company is going to collect huge amount of around Rs 2 billion then how much it will spend on the improvement of the system of distribution and generation of electricity in the metropolis. Now, the citizens of this mega city wait for some miracle that could provide them this basic utility. Meanwhile, the condition of electricity remains nasty in the city as the metropolis faced around 6 to 8 hours loadshedding on rotational basis badly disturbing lives of the citizens. The city is facing 400 MW of electricity shortage. The total demand of electricity for the city is more then 2,400 MW while the supply remains stuck at 1,900 to 2,000 MW. "The company is reluctant to buy electricity from the IPPs, said an official, adding that if such a step is taken, the situation would be different".

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