Sunday, July 8, 2007

Deregulation of a Monopoly / Karachi Electric Supply Corporation II

Thanks Rehan for the pointer, concern to the issue of electricity for Karachi.

Just this morning at about 9-45 am I had a detailed discussion with the electricity regulator known as NEPRA in Islamabad, whereby I had sent and eMail just 4 days before for an NOC for wind power on self finance basis, but an NOC whereby the KESC will install a digital meter which will allow Reverse Metering for the units generated by Wind Power and not consumed for any reason, will be sent to the KESC network, and will be absorbed the KESC. Hence a consumer will get credit by reversing/debiting the units, which means you are reducing your units burned from KESC, or have a plus or credit depending on the units generated.

In view of the wind velocity, which is good in coastal belt of Karachi, Thatta etc., the wind power is cost effective. Some initiative of wind farms at Thatta where land is provided free to establish wind farm for power generation, and the ultimate power will be purchased by WAPDA at guaranteed rate, and gaurateed by the Govt. They are in process and will be comissioned shortly.

Probably what I'm told by the DG Nepra yours is the first case/application we've recieved, and will consider the case.

I have mentioned the just few days before deregulation of power utilities in the EU on the pattern of UK, whereby local utilities as gas which are pipes, and cable of electric utilities can share with other local utilities duly licensed by the Govt., will be allowed at the EU.

I had exactly quoted him the telecom., sector deregulation, and the monopoly of PTCL wires, and the case, which sounded very, very interesting to the gentleman on line, who had to rush for a meeting immediately, and wanted to discuss the area.

With alternate energy, the important cost effective in coastal as Karachi is wind power whereby utilities are established in EU for supply of power as low as 6 cents per KW/hr, with cost/benefit ratio.

I'm trying to locate wind data which studies has been carried out by various private and Govt. entities which indicates the exact wind velocity, to justify the establishment of wind mill to generate power. In some areas as the area where I live, there isn't enough wind, in view of buildings, and other reaons, so the power will not be irregular. In such cases the power generated can be taken at an invertor, and then a/c. current could be used, or sold to the KESC as per production of the wind cycle.

The most important area is the grant of licenses to the local, or community licenses utilising the KESC network to supply electricity to commercial, domestic and industrial units. The optimum size power generation could be utilised for thermal, and wind power.

In my discussion just this morning I have mentioned the case of deregulation of PTA and how it has successfully been appreciated.

The EU case model and deregulation is very interesting and should be studied and be taken on its own merits to Pakistan consumer, to overcome the scarcity particularly Karachi.

Hence investment could be pooled from community based on a community group or companies managed and owned by the group leader/member and operated effectively, with the sense of ownership, and cost benefit.

Regarding MQM they're saying now in todays newspaper to put a waiver for June bill to the consumer from KESC. They don't realise the KESC with deficit of almost a couple of million deficit each month, is running in heaviest losses, at the current rate. If the bills are not paid by the consumer for one month, how they will pay the salaries, and how they will purchase fuel, consumables etc., Making slogans for giving free for one month for the whole city of Karachi is non sense.

The most important breakthrough will be the breakup of monopoly of WAPDA/KESC, which I think is the right time to be taken on the platform of deregulation in other markets, and also India.

This will be a contribution to the society for self reliance, and entrepreneural spirit. I see the future exactly on the pattern of the telecom., sector de-regulation and licensing in the power sector, exactly on what you have highligted is the breakup or divesture of Bell operating companies.

Let's do something for our teenagers, for our communities, for our city, for ourselves.

I'm very much on with wind data accessibility, these days, on nuclear power, in touch with the nuclear regulator on several issues.of nuclear wastes etc.


Haroon Rasheed
Interconnect Partners

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