Nepra forms body to examine KE-SSGCL dispute

ISLAMABAD: While taking serious notice of additional 10 hour loadshedding in Karachi during the prevailing hot weather, National Electric Power Regulatory Authority (Nepra) has constituted a high level committee to probe the matter.

The Cabinet Committee on Privatisation (CCoP) recently approved issuance of National Security Certificate (NSC) to K-Electric subject to clearance from the federal cabinet, aimed at facilitating smooth sailing of 66.7 per cent shares of M/s Abraaj to M/s Shanghai Electric Power Company(SEP).

However, as Sui Southern Gas Company Limited (SSGCL) became aware that K-Electric’s summary is being presented before the CCoP, gas supply was curtailed under the pretext of non-payment of overdue amount of Rs 80 billion, after which the generation of the power utility declined considerably. The dues of Central Power Purchasing Agency Guaranteed (CPPA-G) are around Rs 24 billion on account of energy supply but K-E claims the amount is just Rs 2 billion.

According to KE, its power generation has declined by hundreds of megawatt of electricity due to reduction in supply of gas from SSGCL. K-E has four gas-based power plants that require 180mmcfd to generate 1104 MW electricity.

Published in Business Recorder, 11th April, 2018

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