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The amendment in new K.E.S.C tariff for KW and SB request to the court under article 199

Karachi, December 23, 2012 (PPI-OT): Karachi Water and Sewerage Board has decided to take the amendment in new K.E.S.C tariff for KW and SB request to the court under article 199. It was decided after NEPRA declined the request to review the new K.E.S.C Tariff for KW and SB.

Managing Director KW and SB Misbahuddin Farid stated that, after the increment in rates was announced by K.E.S.C and approved by NEPRA some month ago, we requested NEPRA to review the rates for KW and SB. In our request, we informed NEPRA that KW and SB is the only institution in Pakistan, which is supplying water to its consumers on such low rates.

We are running the worlds largest pumping complex situated at Dhabeji and we bring water to the city from sources situated 200 kilometres away from the city. The water has to be pumped in three phases in order to reach the city. We are a public service institution not a commercial one.

However, K.E.S.C treats KW and SB as a commercial institution and the increased rates are that paid by commercial consumers. Whereas, KW and SB has been demanding that, a special tariff must be introduced for KW and SB not only to determine the true nature of the institution but also to save public taxes for the betterment of this public service.

NEPRA on the other hand instead of introducing a separate tariff for KW and SB not only approved the increment in rates but also denied the request by KW and SB in this regard. K.E.S.C has implemented the new rates putting an additional burden of 400 million rupees monthly upon KW and SB.

He said that, in the letter to NEPRA, we requested NEPRA that K.E.S.C charges 9 different taxes making the bills impossible for KW and SB to pay these bills. In addition, most of the consumers belong to middle class and a huge number reside in slums that do not pay their water bill regularly. We only provide 5% of our total water to commercial consumers and 95% is provided to resident of the city.

We requested NEPRA to consider all these facts and grant approval for a new separate tariff, which would treat KW SB as per its true nature, A public service institution, instead of a commercial consumer. The request was first sent 10 years ago and NEPRA never replied. After two years of struggling KW and SB succeeded and the hearing in this regard took place about 5 months ago

He said that after receiving the rejection we are forced to think that NEPRA would not be able to do justice in this matter. Even though 80% participants supported KW and SB’s stance during the hearing NEPRA has given the decision in favour of K.E.S.C putting 400 million rupees of additional load on KW and SB.

KW and SB cannot bear these charges neither can we put the load on the residential consumers nor we can convert the nature of the institution from a public service institution to a commercial one.

M.D KW and SB Misbahuddin Farid expressing his distress said that in this situation we are left with only one option, which is to contact the court under section 199. We are consulting legal experts in order to get justice.

For more information contact:
Karachi Water and Sewerage Board
Mr. Zahid Mehmood
P.S. Chairman Office
Tel: 99240819
Fax-99245136

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