20000412

Complete power

shutdown today

if PSO doesn't supply

oil to KESC

ASHRAF KHAN

KARACHI: Karachi may face a complete shut down of electricity on Wednesday if PSO sticks to its refusal to continue fuel supplies to KESC. The fuel supply has been stopped because of KESC's inability to pay for even one day's purchase, it is learnt.

The Karachi Electric Supply Corporation (KESC), which pays for fuel purchase to Pakistan State Oil (PSO) on daily basis, failed to pay its bill for Sunday last. As a result, PSO stopped supplying furnace oil to KESC on Tuesday to bring the power utility to its knees, sources told Business Recorder.

They said at present KESC's major power stations, located at Bin Qasim and Korangi, have fuel oil sufficient only for operations till Wednesday morning. After that KESC's thermal power stations would come to a complete halt with a consequent cut-off from Wapda's power supplies.

The KESC has been buying furnace oil from PSO on daily basis since May last when the present management entered into an agreement with the oil company to cap its huge oil bills arrears. PSO receives about Rs. 400 to 500 million in advance daily to meet KESC's fuel oil need of 4000 to 5000 tonnes. Sources said that during the past few days, KESC recovery drive slowed down on account of Muharram. The Corporation was desperately looking for GST refund of Rs.770 million from the Ministry of Finance as well as Rs. 272 million from the government of Sindh. Due to nonavailability of these amounts, the KESC failed to pay Rs. 500 million to PSO for the fuel it purchased for Sunday last. Now, a sum of Rs 900 million is due to be paid by KESC to PSO.

Sources said that Islamabad was trying to mediate between the two bickering state-owned companies.

KESC is already short of electricity since Wapda has restricted its supplies to only 200 mw, against KESC's requirement of over 300 mw.

Sources said it would be a disastrous situation in Karachi, if the fuel oil supplies were blocked. It would not be possible to energise KESC transmission system from the Wapda's supplies if the Corporation's own power generators did not function.