Karachi, 14th December: The Karachi Electric Supply Company has released yet another statement in which the power utility has strongly refuted claims made by Vice Chairman NEPRA Khawaja Muhammad Naeem in which he said that KESC has not been generating electricity at full capacity violating its agreement and buying electricity from the NTDC at low rates.
A KESC statement cleared that as a prudent utility operator, KESC despatches its energy in accordance with the Economic Dispatch Merit Order and which was also mentioned in the hearing by KESC representative. The Economic Merit Order in simple words means, that the generation and power purchase sources are optimized so as to reduce the financial burden on the end consumer, strictly in accordance with the law and in order to provide relief to consumers.
KESC has also made clear that the company has not yet received any order in writing from NEPRA. KESC has reminded NEPRA that the company is fully complying to the provisions of the Power Purchase Agreement and has not violated any agreement. Furthermore, the matter related to the purchase of 650MW from the NTDC is with the Honorable Sindh High Court, on which the Honorable Court has ordered a Status Quo. NEPRA is well aware of this and the same was also reminded in the same hearing by KESC representative. KESC clarified that this matter was also referred to the Honourable Supreme court and KESC’s legal counsel successfully defended and clarified its position. The Honourable Supreme Court didn’t made any observations regarding the supply of 650MW by NTDC to KESC in its judgement December 10th 2013.
KESC’s statement further stated that the company operates within its legal barriers and also reserves the right to take legal action against any unlawful decisions from NEPRA.