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.

Regards,

Haroon Rasheed
Interconnect Partners

KESC Karachi Electric Supply Corporation

People of Pakistan have seen a new Telecom World in Pakistan, The same people who used to wait for 20 years for a phone connection, now have 3 GSM Chips in there pockets.

PTCL which used to charge 120 rs a min to call the US now offers the same for 1 rupee a min.

Pakistan now has the CHEAPST Cell phone service, in compare to ANYWHERE in the world, and yet the phone companies still make A LOT of money.

Today I saw a program on AAj TV About the Electricity problems of Karachi, and I do not know why no one has suggested to request the Govt to step in and form a new Body to GOVERN The electricity and allocate private companies to come in and become the power providers just like they did for phone service.

The Chairman of WAPDA according to this program says that there will be no power for the cities like Karachi for the next 7 years.

I have 2 small suggestions:

1. What My Suggestion is that Pakistan Govt can issue the licenses for 10 nation wide and 100+ local companies to privately provide power to the consumer.

This can be done in multiple phases, and a Urgent license can be issued instantly, and then a good policy can be made about the power policy and announced next year.

2. The Govt should also remove any and all taxes and duties on import of alternate energy tools for consumers, like a 5kva wind generator from China now costs only 4000$ (I have already ordered mine) which will not create pollution and nor will cost the consumer any money in future , and will only be used by the consumer to have power, thus generating more productivity for himself and others around him.

5 out of 5 licenses should be awarded to international companies and 5 to local companies, so that we can benefit from both national and international experiences.

I think that since this problem is in majority in Karachi, MQM should take this seriously and have this done really quickly by the President or the national assembly.

How will this actually work:

In the telecom world a very simple example is of DSL service, PTCL gets money on every connection that runs via the wire of PTCL by say multinet and multinet can still compete based on the quality of service with PTCL and give better service to consumers on the same wire.

The same Copper wire of KESC can be used by the private company and they can pay a fee to KESC for using there wire, unless they can provide there own wire to the consumer.

The Private Power concept is not something new, and is done at this time in United Kingdom and in the United States.

I request you to forward these 2 small suggestions to those who actually matter, and who can get this done for us.

Rehan