KARACHI, July 19: Karachi Electric Supply Company has stated that the recent increase in power tariff is a decision from NEPRA, which is based on a mechanism derived from the 'Fuel-Mix' used by the utility to generate electricity during a given period.
Due to the less than adequate supply of gas to KESC, the utility said that in order to maintain the regular load shed regime in the City, it had been constrained to increase reliance on the comparatively 370% more expensive, Furnace Oil, to produce electricty.
Fuel being the basic ingredient for power generation has a direct impact on the end user tariff and with the spiralling international oil prices, Furnace Oil is definitely not the preferred fuel of choice for power generation. KESC said, that it is not in favour of increasing power tariffs and making electricity more expensive for the average consumer. Rather its key focus is towards generating 'Affordable Electricity', which can only happen if it is provided with adequate supply of the preferred fuel - Natural Gas.
It is only in the interest of the consumers, that KESC has all along been demanding adequate supply of natural gas which is the only way to check the spiralling power tariffs. Ironically, despite having the generation capacity, KESC has never received a stable supply of natural gas commensurate with its requirements. Especially with the induction of its 560MW state of the art power plant, Bin Qasim 2, setup at a cost of $450 Million, its requirement of 400mmcfd of gas is at best met only half way, around the 50% mark. Had the gas supply been provided as per KESC requirements, not only can the load shed duration be brought down but the power tariff could also be kept in check and within the reach of consumers by and large.
KESC said that in order to minimize its reliance on the imported and expensive Furnace Oil it needs to be provided atleast 400 MMCFD of gas on a stable and regular basis, the ultimate beneficiary of which are the end users - the power consumers.