KWSB wants 50pc cut in KESC’s tariff

Karachi Water and Sewerage Board (KWSB), which is defaulting over Rs. 17 billion of Karachi Electric Supply Company (KESC), has moved to National Electric Power Regulatory Authority (Nepra) demanding at least 50 percent reduction in KESC’s tariff for it.

In a surprise move against the power utility, which is frequently disconnecting power supply to KWSB’s installation for non-payment of dues, the board has approached Nepra seeking separate tariff structure.

It argued that as a public utility the board was supplying water to public at minimum fixed rates, besides providing free water supply to various institutions and government departments as per the directives issued to it, hence power tariff for the utility should also be reduced.

It further said the power utility was providing electricity at reduced tariff to hospitals, religious and educational institutions and other welfare organizations, the same facility should also be extended to the board.

KWSB through the petition has requested NEPRA to allow a reduction of at least 50 percent in tariff of all consumer categories including residential, commercial, industrial, agricultural, temporary and single point supply tariff of KESC for the board. As many as 50 percent cut in the fixed charges ranging from Rs 200 to Rs 400 has also been demanded.

Admitting the petition for hearing, Nepra has decided to hold a public hearing on June 12, 2012 at National Institute of Management and invited any person/party to who intents to participate in the proceedings.

The move came after the board faced disconnection of electricity supply to its installations especially to the pumping stations, as KESC was not ready to continue supply without payment of dues.

Though various proposals for solving the circular debt problem have been forwarded to the Ministry of Water and Power, Ministry of Finance and other concerned authorities by the two parties, the issue has not yet been resolved.

According to sources, adjustment of dues was decided in a meeting held at Ministry of Finance and notice was issued on November, 19, 2008 to adjust the dues KWSB owed to KESC with the same dues which the water board was to be paid by the federal government. But nothing happened after that meeting.

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