Karachi Electric Supply Corporation agrees to cut Security Deposit, SDC

KARACHI (March 30 2003) : A long-standing demand, initially raised by SAI, for reduction in security deposit and system development charges, being recovered by Karachi Electric Supply Corporation (KESC) from industrial and commercial consumers and bringing these at par with Water and Power Development Authority (Wapda), has been accepted by the Board of Directors of KESC in its meeting held on Saturda.

The Board has agreed to cut and withdraw the said charges respectively.

Haroon Farooki, Chairman, Site Association of Industry (SAI), who also is a director on KESC Board, stated that the issue in question was being agitated vehemently by SAI to eliminate the discrimination in power rates and bringing them at par with Wapda for the last three years and now the Board of Directors of KESC has accorded approval in Saturday meeting.

He said that it was the SAI which initially raised the voice for elimination of such discrimination in power rates of KESC and Wapda because of which the industries in Karachi had become uncompetitive even within the country and internationally.

He said that 88 percent exports of value-added textile made-ups are manufactured and exported by the industries working within KESC network and were finding it very difficult to fight with their competitors on two fronts–domestically and


Farooki said that KESC's combing operation cell was compelling the consumers, especially industrial consumers, to pay SD at the rate of Rs 3000 per kw along with Rs 3500 per kw towards SDC making a total of Rs 6500 per kw, whereas Wapda is charging only Rs 550.00 to Rs 930.00 per kw towards security deposit only as per its tariff, and KESC, in case of non-compliance of the demand was disconnecting the power supply of the industrial units leaving them with no choice but to pay these high charges.

Haroon said that Wapda Chairman and KESC MD, having earlier agreed in principle, approved to place the matter before the KESC Board of Directors for formal approval to bring down these charges at par with Wapda rates.

He said that Saturday's Board of Directors meeting accorded its approval and now the maximum Security Deposit will be Rs 1375 per kw, instead of Rs 3000 per kw, depending upon the type of tariff, and there will be no System Development Charges.

He said that the issue of merging the light meters into power meters of industries, in line with Wapda, was also taken up in the Board meeting and the Board, having agreed in principle, instructed KESC to put up certain information before the Board in its next meeting for according formal approval on the subject.

Site chief has thanked Zulfiqar Ali Khan and Brig Tariq Saddozai for considering this issue sympathetically in order to provide relief to its consumers in general and industries in particular.

He assured the MD that industries in Karachi would co-operate with KESC and he would see that industries would not default deliberately.

He also urged KESC MD to take necessary steps to further improve the customer services under a new culture of 'Service with a Smile' as adopted by Sui Southern Gas Company and treat the consumers as their customers and not slaves.

Farooki also thanked Sindh Governor Ishrat-ul-Ibad, Chief Minister Ali Muhammad Mahar, Muhammad Adil Siddiqui, Provincial Minister for Labour, Transport, Industries & Commerce and the Federal Minister for Industries and Production Liaquat Ali Jatoi for their all-out support and help in resolving this long-standing issue.

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