Deposit for new KESC connection halved

By Khalid Mustafa

ISLAMABAD: The government of Pakistan has abolished system development charges (SDC) for Karachi Electricity Supply Corporation (KESC) customers and slashed the security deposit for a new KESC connection by 50 percent with effect from September 2, 2003, according to a notification by the Ministry of Water and Power.

The notification said, “The KESC will not be entitled to levy charges on its consumers for the cost of connection, system extension, reinforcement or development except in accordance with NEPRA’s Consumers Eligibility Criteria, 2003.”

The KESC earlier charged Rs 1,500 per Kilo Watt (KW) in SDCs from residential consumers and Rs 3,500 per KW from commercial, industrial and bulk supply consumers. “Now the KESC will not be able to levy SDCs on any consumer,” it said.

KESC filed a petition with NEPRA on April 21, 2003 and sought the determination of future security deposit and SDCs. It proposed the first applicant should bear SDCs, which should be 50% of the total cost of laying 11KV overhead and underground extension cables, joints and poles. It also proposed that no SDCs should be charged where an 11KV extension cable already exists.

The government has fixed security deposits at Rs 300 for rural and Rs 500 for urban consumers consuming electricity up to 4KW, Rs 500 deposit plus Rs 500 per KW for consuming 4.1 to 20KW of electricity and Rs 8,500 deposit plus Rs 800 per KW for consumption above 20KW.

It has also fixed a security deposit of Rs 900 for commercial consumers using electricity up to 4KW in rural areas and Rs 1,600 in urban areas. It has fixed security deposit at Rs 800 per KW for industrial consumers using up to 40KW, Rs 15,000 for consumption between 11 and 501KV and Rs 2,000 for consumption between 220 and 5,001KV.

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