KESC decides to move court against KESC tariff

Karachi: Karachi Water & Sewerage Board has decided to take the amendment in new K.E.S.C tariff for KW&SB 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&SB.

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

“We are running the world’s largest pumping complex situated at Dhabeji and we bring water to the city from sources situated 200 kilometers 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&SB as a commercial institution and the increased rates are that paid by commercial consumers. Whereas, KW&SB has been demanding that, a special tariff must be introduced for KW&SB not only to determine the true nature of the institution but also to save public taxes for the betterment of this public service.

“Instead of introducing a separate tariff for KW&SB, the NEPRA not only approved the increment in rates but also denied the request by KW&SB in this regard. K.E.S.C has implemented the new rates putting an additional burden of 400 million rupees monthly upon KW&SB,” he said.

He said that in the letter to NEPRA, we requested that K.E.S.C charges 9 different taxes making the bills impossible for KW&SB to pay these bills. In addition, most of the consumers belong to middle class and a huge number reside in slums who 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&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&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&SB.

“KW&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&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.

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