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Tuesday, January 26, 2010

Power crisis grips Karachi

Power outage has become the main issue in the city, adding miseries to the masses and negatively affecting industrial and commercial activities. In this hot and humid weather, the citizens are experiencing power failures for up to 18 hours, sparking widespread resentment against the privatised Karachi Electricity Supply Corporation (KESC).

Like the previous power crisis, this one is also reportedly blamed on the mismanagement of the power utility. There have been reports that the KESC was allegedly not generating electricity to save the fuel cost. Similarly, it was not purchasing power from Independent Power Producers (IPPs) for the same purpose.

Moreover, the National Transmission and Dispatch Company (NTDC), a subsidiary of Pakistan electric power company (PVT.) LIMITED (PEPCO) previously reported to have disconnected the power supply to the KESC over outstanding dues amounting to Rs13.7 billion. Therefore, the NTDC demanded a repayment of three billion rupees, otherwise the power supply would have been cut off, which it did, causing immense hardships to 16 million people and crippling economic activities of the city.

Admittedly, the energy crisis has become the most daunting challenge for the new government.

However, this is an old phenomenon as according to an Asian Development Bank study regarding the power supply in Asia, Pakistan, since its creation, has only made two significant developments in the power sector. These are, namely, IPPs for the power generation and National Electric Power Regulatory Authority (Nepra) for the protection of consumer rights. Although, the latter in the words of the Senate body had failed to fight for consumer rights with the city based party protesting against the 30 per cent increase in the power rates.

But the problem became particularly acute during the last decade partly because of the silt build-up in the two major hydel reservoirs, Mangla and Tarbela and the slow growth of IPPs among other reasons.

Tarbela had an original storage capacity of 11.62MW in 1974, which has reduced to 8.24 and will further lose up to 5.40MW by 2025. The IPPs have grown at a snail’s pace during the last six years, adding only 27MW, according to the study carried out by the AKD Securities. Transmission losses because of the poor quality infrastructure and a significant amount of power theft were the other reasons. The financial health of the power utility is also a key concern.

The concerned KESC officials believe that the utility needs at least Rs15 billion to Rs20 billion to emerge from the present crisis. The misuse of power in many areas is another facet of the power crises which involves the tampering with the main lines. The KESC management is unable to control all the wastages. They say that if a main power supply line is appropriate for six families, it is being used by 60 families due to illegal connections.

A large number of people, who do not have legal connections, use electricity by greasing the palms of the concerned meter reading officials and billing department. This corrupt culture affects the people who pay their bills honestly and benefits those violating the laws.

This shows the unavailability of the civic sense. Although people have been complaining about the power outages for ages, yet the KESC often claims that it is doing better. There have been allegations that the power utility officials have been looking at this problem as “spectators”.

However, the technical experts sent by the federal government led by the power secretary said that the transition status prevailing in the KESC is another reason behind the power supply crisis. As the new management took over the power utility, the officials hoped that the situation would improve.

Meanwhile, a large number of tailoring shop owners, Public Call Offices and local clinics operating in deprived areas have been facing this problem. Even a few clinics and 24-hour hospitals situated in these areas claim to have installed vaccination facilities. But it is again a question of whether the vaccines in these centres are able to maintain the required temperature or not.

A survey needs to be conducted in order to understand how these health centres providing vaccine facilities to the unaware masses are functioning accordingly. There are already reports about the sale of spurious drugs and certain markets have been openly selling the same at the cost of public health.

Besides these concerns, there are some other issues such as inflation, which has increased in Ramazan as the authorities’ efforts of setting up a district price control committee, increase in punishment and fine against hoarding through legislation and setting up fair price markets have not brought desirable results so far.

The increase in food prices is partly a result of the rise in the prices of fertilizers while certain elements have created its shortage, prompting the farmers to protest against it. The water shortage is likely to affect the wheat production, which will be compounded as India has reportedly blocked the Chenab river flow to Pakistan.

Inflation will further increase the poverty and inequality. According to the ADB report, if there is a 10, 20, and 30 per cent increase in the food prices, the number of poor people will rise by 7.5m, 14.67m and 21.96m respectively.

Some difficult decisions have to be taken by the new government. The ruling party leaders often talk about the “new social contract” and it is time they implement the same. The United Nations in its new report “overcoming economic insecurity” says “a modern state can not advance to high levels of economic and social development, internal order and peace without cooperation forged through a social contract.” This social contract can be secured through a fair distribution of resources, which will also maintain the social and economic order.

It is heartening to note that the former mayor of Bogotá, Enrique Penalosa is visiting the city. Previously, when he was in Mumbai, he had said that public space is like the human body. Since no one can give his/her finger in return of millions of rupees, this principle should also apply to public spaces, which cannot be sold for financial gains.

Regarded as the best mayor of the world, interestingly Penalosa has developed a bicycle track up to 20 kilometres long in Bogotá.

One hopes that our city planners will learn from his experiences as allegedly land is being used in the city without taking into account the social and economic considerations.

Another issue is the extra-ordinary powers of the Nazim, which are reportedly creating differences between the provincial coalition partners.

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