The reliable sources inside the company disclosed that despite getting Rs 30 billion subsidy from the federal government and other sources, the private utility has not taken much interest to serve the people. The utility has not even paid its dues in time to different companies and has become defaulter of SSGC, WAPDA, Task Energy Department, Pakistan State Oil etc.
The sources informed that KESC has been defaulted in paying Rs 2 billion to Sui Southern Gas company, Rs 54 billion to WAPDA, Rs 3 billion to Pakistan State Oil (PSO) and Rs 2.5 billion to Task Energy Department.
The sources further said that influential political individuals own shares with the Abraj Group of Companies who owns KESC that was the reason that the utility was not willing to pay longstanding dues to the government departments.
In the meantime, the KESC has four times increased its tariff and at the same time is getting Rs 30 billion subsidy from the federal government. The company has not made any investment to fix the distribution faults, as the insiders said that almost 50 per cent of electricity was stolen during distribution and the company in order to recover these losses issue average billing.
It is worth mentioning that the utility is getting subsidy from the federal government on the condition that it will not increase its tariff but still the utility has increased its tariff four times, which is a violation of consumer rights.
General Secretary of utilitys share Holders Association Chaudhry Mazhar Ali while talking to TheNation said that the power consumers were paying Rs 9 billion to KESC each month. He alleged that the company was transferring that money outside the country instead of investing it to improve the distribution system and other related matters.
When contacted the KESC officials gave different version and reasons for the money they owe to different government departments.
They claimed that Rs 18 billion were outstanding against Karachi Water and Sewerage Board, Rs 3 billion were outstanding against Sindh government, Karachi Police has to pay Rs 1.5 billion while Rs 27 billion were outstanding against other electricity consumers.
They said if these government departments and the defaulted consumers clear their dues in time, the utility would be able to serve the people in better way.