SSGC replies to Monis Alvi’s assertions on overdues issue and fresh GSA


SSGC emphatically declines the assertions made by MoonisAlvi, CEO K-Electric the other day related to the overdues it owes to SSGC as well as KE’s perspective related to GSA between the two companies.

SSGC reiterates, as it has many times in the past that it has always shown utmost seriousness in ironing out contentious issues with KE including the signing of a valid GSA with the power company, even though over dues KE owes to the gas utility has now crossed Rs. 122 billion, and not  Rs. 13.7 billion as CEO KE asserts.

SSGC has always maintained  that a very vital  issue of growing over dues need to be sorted out before the Company inks a fresh GSA with KE.

SSGC maintains that contrary to CEO KE’s assertion, the  main reason behind lack of progress in signing GSA has always been due to KE’s reluctance to abide by 2018 decision of then Cabinet Committee on Energy (CCOE) wherein the CCOE directed for the finalization and signing of Terms of Reference (TORs) for the settlement of dues between SSGC, KE and Karachi Water and Sewerage Board that has been pending for way too long.

The TORs, initialed by the MDs of both the Companies (SSGC and KE) in April 2018, involved engaging an independent reputable Chartered Accountant Firm for the purpose of determining the actual overdues figure KE owes to SSGC. While SSGC had sent TORs to KE in August that year, the later, to this day, has been reluctant to counter-sign the same. In fact when SSGC exerted pressure on KE to execute the TORs for reconciliation, in June 2018, KE went to the Sindh High Court.Recently NEPRA conducted an inquiry on excessive load shedding and also prevailed on KE to sign on ToR to move forward.

The Ministry of Energy has remained in picture on the developments related to the above issue since 2018 and very recently as per NEPRA directives, SSGC referred the matter of implementation of CCOE decision of April 23, 2018 once again to the concerned quarters in Islamabad.

Moreover, SSGC is keen and interested in augmenting the infrastructure to facilitate KE’s new Bin Qasim Power Complex simply because it wants to address the sufferings of the people of Karachi.

Despite the fact that the only GSA between the two utilities is of 10 mmcfd, SSGC has always provided much more gas to KE than the GSA allocated amount so as to avert power outages in the city of Karachi.

While currently SSGC is providing on average 70 mmcfd gas to KE, last summer it provided 270 mmcfd plus gas to the power company due to greater gas when KE failed to arrange alternate fuels for power generation (FO / Diesel).–PR

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