20000306

KESC suffers Rs 23.128 bn loss in 18 months

RECORDER REPORT

KARACHI: The Karachi Electric Supply Corporation (KESC) losses in the 18 months amounted to Rs 23.128 billion, showing a deficit of Rs 8.332 billion compared to same period last year owing to high fuel prices and theft of electricity.

According to corporation's report in the six months ended December 31, the revenue, which include energy sales, recorded a small rise of 9.09 percent to Rs 13.776 billion compared to Rs 12.628 billion of the corresponding period a year ago. The company has incurred a loss of Rs 3.809 billion in six months as against Rs 2.960 billion in the corresponding period last year, showing an increase of Rs 849.295 million.

The major factors, identified by the corporation, were increase in cost of fuel, mark-up on terms finance certificate and charging of interest on various projects which were incomplete till December, 1998 and increase in transmission and distribution losses which include theft of electricity.

Army was inducted into the management of the corproation in May 1999. The following priorities were set to improve the functioning of KESC.

Restoration of generation capacity which was pending for a long time; improvement in transmission and distribution network, provision of one-window service to the consumers for billing and complaints and check on pilferage and theft to improve the revenues.

During the period under report, as a result of corrective measures following achievements have been made?

Generating capacity has been improved, long awaited cases of correction of bills have been substantially cleared and measures have been taken to reduce non-development expenditures.

The prime objective of the present management is to embark upon a campaign against pilferage, theft and recovery of dues from the consumers. It is expected that these steps would result in improvement of financial position in the short and long-term.