KARACHI: Sindh government claimed on Tuesday it would soon start supplying electricity to Karachi’s industrial and residential consumers cheaper than K-Electric — currently the only utility providing power in the metropolitan city.
“Under SEPRA (Sindh Electric Power Regulatory Authority), electricity supplied to Karachi’s industries and residential consumers will be much cheaper than the rates charged by K-Electric,” Sindh Minister for Energy, Planning and Development Syed Nasir Hussain Shah said on Tuesday while speaking at a multi-stakeholders conference titled ‘Competitive Electric Market in Pakistan’.
“This is major good news for citizens burdened by expensive electricity, as the establishment of hybrid parks will lead to reduced power tariffs. Sindh is working on resolving energy issues by adopting models from other countries.”
The provincial government has completed arrangements for the low-cost electricity and it would notify the development this month, according to a statement issued by the provincial ministry.
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“This electricity will be generated in Sindh and transmitted through STDC (Sindh Transmission and Dispatch Company), with tariffs set independently by the Sindh government rather than linked to NEPRA’s (National Electric Power Regulatory Authority) rates,” Shah was quoted saying this at the conference organised by Pakistan Business Forum (PBF) and think tank Renewables First.
The statement, however, did not carry numbers as what would be price/tariff of the power and how much electricity the provincial government would generate and/or supply to Karachi’s industrial and domestic consumers.
Nasir Hussain Shah stated that staff recruitment for SEPRA had been completed and its notification would be issued within the current month (of August).
The primary focus is on economic zones, and the aim is to provide the first SEPRA-supplied electricity to the K-IV project’s grid, according to the ministry statement.
“Sindh Assembly has given constitutional approval to SEPRA and that citizens of Karachi will also benefit from this system, provided that the transmission network remains with STDC,” Shah said.
“Providing affordable electricity to the business community and the public is the vision of President Asif Ali Zardari and Chairman Bilawal Bhutto Zardari.”
He further said the issue of high capacity charges of Independent Power Producers (IPPs) could be resolved by establishing more industries, because while payments must be made, economic growth should also occur.
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Shah also noted that there was no representation of Sindh in K-Electric’s board, with three directors from the federal government.
“We have asked the federal government to have one representative from the federation and the remaining two from Sindh,” he said.
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