Karachi, August 17, 2012:Karachi Electric Supply Company has very strongly and categorically rejected the one-sided, baseless, mala fide and defamatory allegations casted against KESC via a press release issued by the so called think tank, SDPI. Reference to the defamatory media press conference, it seems that SDPI is completely ignorant of facts and utterly prejudiced towards KESC. The mala fide report has exposed the shallowness and biasness of the self proclaimed think tank.The negative bias against KESC and the hidden nefarious agenda of SDPI, is evident from the fact that SDPI did not even consider it worthwhile to seek information from KESC despite an official offer and invitation by KESC. This isolated approach clearly shows the ulterior motives and proves that SDPI has fabricated this report on the behest of its masters.
The references of the so called research report made by SDPI in their press conference, seems to be a result of irresponsible and poor professional ethics of its authors. Even if SDPI for whatever reasons best known to them, did not wish to contact any KESC official, it could have gathered loads of factual information on KESC’s accomplishments from KESC’s website and published annual accounts duly audited by KPMG. However, this report clearly reflects that facts have been either twisted or concealed to present a distorted picture of KESC; with the sole intention to malign the success story being carved by the sole privatized power utility.
It is important to mention here that KESC, under its present management, has injected around USD 1.5 billion in shape of equity and debt. This includes USD 300 million of fresh equity that is part of the total USD 361 million investment, agreed and committed by the KESC management. It was only due to the credibility and professionalism of the management that IFC, ADB, OeKB, and local and foreign banks have shown confidence in KESC and provided funding for many completed and on-going projects. SPDI’s novice researchers could not get these easily verifiable facts because their report was to serve some other purpose. It is worthwhile to mention that KESC’s performance has been head and shoulders above the rest of the country and one finds it hard to see the so called “energy crisis” as mentioned by SDPI in its press statement.
It was due to this huge and unprecedented investment that KESC was able to add fresh generation capacity of 1,000 Megawatts in a short span of time, overhaul old plants and lay down new transmission lines, significantly enhance the distribution capacity and considerably improve its technical and service capability. Just to remind the ignorant SDPI, that the USD 450 Million, flagship gas-fired 560 MW power plant at Bin Qasim is already functional and its combined cycle efficiency is one of the best in the region, however, SPDI very conveniently ignore all these facts because the objective of their report was to twist facts.
Reference to KESC’s managing its operational territory; KESC has since long, chalked out a Load Shedding Policy which differentiates between low loss, medium loss, high loss and very high loss areas. According to the LS Policy, load shedding is determined on the basis of the loss profile of the feeder, i.e. Low Loss, Medium Loss, High and Very High Loss feeders. Furthermore, KESC recognizes the importance of industrial and strategic consumers and as a result has instilled a zero load shedding policy for these customer types for the last 3 years.
Amongst its key initiatives KESC has undertaken a number of steps to reduce dependence on gas and achieve fuel diversification. Below are the project highlights:
KESC, earlier this year signed a USD 200 Million JDA with a Hong Kong based firm, BEEGL for converting FO based units at BQPS-1 to coal. Starting with Phase I (2 units of 210 MW). And has recently also signed an MoU with the same firm for setting up fast track coal projects of upto 1000 MW in Karachi. The Company is also working to develop bio-waste to energy project which will convert cattle manure from Landhi Cattle Colony and organic food waste to produce electricity and bio-fertilizer.
KESC also plans to set up 300 MW coal fired power plant at Thar. For this purpose, a Joint Development Agreement between KESC and Oracle Coalfields has been signed
SPDI, the so-called think tank, casted allegations about KESC receiving subsidy from the GoP – but little it seems that they know, that the consumer tariff subsidy is a pass through item that KESC passes on to its consumers on behalf of the government and it is in effect the consumers that receive this, and not the utility. It is important to note here that KESC, after privatization, has not received a single rupee from the government to subsidize its operations. The ignorance of the “think thank” is deplorable.
KESC said that unfortunately, this poorly researched report is nothing but an unsuccessful attempt to defame and willfully malign the private power utility. The biased and unfounded report has also exposed the poor standards of research capabilities and business ethics of SPDI. KESC has demanded that SDPI must immediately withdraw the distorted, derogatory and defamatory remarks it has made against KESC through their press conference and allusion to their research report. KESC will not only defend its case at all public forums but will take whatever legal steps within its reach to make SDPI pay for its deliberate act of defamation.