Default looming: K-Electric to pay almost Rs2.5bn to SSGC

KARACHI: K-Electric Limited, which cuts off connections due to non-receipt of electricity bill, turned out to default on Rs2.5 billion of payables to Sui Southern Gas Company (SSGC), ARY News reported on Thursday.

K-Electric sources told ARY News that the company was suffering from losses due to a reduction in gas supply and pressure, causing a total shortfall of 500 MW.

The sole power supplier for the metropolis has yet to pay almost Rs2.5 billion to Sui Southern Gas Company for the gas, K-Electric consumed to produce electricity.

In this regard, a SSGC spokesperson claimed that K-Electric has violated the orders of Sindh High Court (SHC). The spokesperson noted that K-Electric has not yet paid its last due bill, owing Rs 2.46 billion to SSGC.

The Sui Southern Gas Company further said that another payment of Rs 8.6 billion would be due to K Electric on June 3, 2022. “If K Electric remains default, there will be no option but to reduce the gas supply,” the spokesperson added.

It is pertinent to mention here that due to non-supply of gas or reduction in pressure, the K-Electric power plants are now producing 20 percent of electricity.

The K-Electric spokesperson, in this regard, claimed that the scheduled 190 MMCFD gas was not being received from Sui Southern Gas Company, only 20 to 25 percent production is left from the 200 MW plants.