KARACHI, June 19: Karachi Electric Supply Company has clarified that it has no current outstanding dues to NTDC after adjusting Tariff Differential payable to KESC by Ministry of Finance. Besides, the amount that KESC owes to SSGC is Rs. 27 billion and not Rs. 41 billion, and this amount has mainly to be settled against Rs. 18 billion payable by Water Board to KESC, as agreed.
Since the new management in September 2008, a total amount of Rs. 142 billion has been paid to NTDC against purchase of electricity worth Rs. 131 billion. KESC said that during current fiscal year 2011-2012, Rs. 46 billion have been paid to NTDC against power purchase of Rs. 47 billion.
Current payable to NTDC is Rs. 28.9 Billion and more than this amount is KESC’s receivable from Ministry of Finance on account of Tariff Differential to be payable directly to NTDC by Ministry of Finance as per Power Purchase Agreement. Therefore, after this transaction, actually nothing is payable to NTDC by KESC on current dues, while old outstanding arrears amount to Rs. 10.15 billion are to be paid in monthly installments of Rs. 400 million which is regularly been paid and adjusted every month. And as per the 5 year Power Purchase Agreement expiring in 2014, KESC imports about 650 MW from NTDC, which is less than even 5% of the country’s total dependable installed capacity of 15000+ MW.
SSGC: KESC’s current payables to Sui Southern Gas Company are at Rs. 27 billion against purchase of natural gas, and not Rs. 41 billion as being claimed by certain quarters. This amount has mainly to be settled against Rs. 18 billion KESC’s receivables from Karachi Water and Sewerage Board as agreed. More notably, KESC stated, that the balance payable of Rs 9 billion to SSGC will be paid off by the utility in less than a year if the allocated quota/requirement of 276-300 mmcfd gas is provided to it. This is in addition to the accumulated amount of Rs. 90 billion already paid by KESC to SSGC since September 2008.
Importantly another key fact that can not be ignored is that the Federal and Provincial Government Departments and entities themselves owe KESC about Rs. 60 Billion, creating massive cash flow issues for the power utility.