KE says it’s not Buying Electricity at Subsidised Rates

KE says it’s not buying electricity at subsidised rates

KARACHI: The Karachi Electric (KE) said on Thursday it was wrong to suggest that it had been purchasing electricity at subsidised rates.

In a statement aimed at countering what it called wrong claims made by officials of the National Electric Power Regulatory Authority (Nepra) and ministry of water and power at meeting of a parliamentary committee held on Wednesday, the KE said the rate being charged by the National Transmission and Despatch Company (NTDC) was subject to a decision taken by the Economic Coordination Committee in 2008 which read: “It was inter-alia agreed, in principle, that KESC be treated at par with the Discos for tariff purposes which shall be applicable with prospective effect as per rules.”

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The KE said the ECC had taken the decision after noting that Karachi was being discriminated against as it was being sold electricity at higher rates when compared to those of other Discos. The decision eliminated disparity and brought Karachi at par with the other Discos.

According to the KE statement, there is a uniform tariff regime for the country. The tariff being charged by KE is determined entirely by Nepra after a scrutiny of the data pertaining to its power generation and other relevant activities. The statement said that at no point had KE received any discount from the NTDC.

Regarding the claim that the price at which natural gas was being supplied to the KE would lead to bankruptcy of the Sui Southern Gas Company, the statement said the utility was being charged the same tariff which was applicable to the power sector. This tariff is the “third highest as determined by the Oil and Gas Regulatory Authority”.

“Making unsubstantiated claims was akin to deliberate defamation of KE’s operational integrity,” it said.

The statement added that contrary to claims made at the meeting that the utility was refusing to “come to the negotiating table” the KE had been holding meetings with the government officials.