A parliamentary panel has suggested that the government should stop 650 megawatts of power supply to Karachi Electric Supply Company (KESC) and has also constituted a sub-committee to probe alleged misappropriation of money in privatisation of the power company.

The new committee, headed by Senator Shahi Syed, will also examine claims of delay in depositing PTV licence fee and taxes by KESC, details of power purchase agreement between KESC and National Transmission and Dispatch Company (NTDC) and decision of the Council of Common Interests (CCI) to divert 350MW of electricity to the national grid. The body will submit its report within a week.The Senate Standing Committee on Water and Power, which met here on Monday with Senator Zahid Khan in the chair, voiced concern over supply of electricity to KESC at subsidised rates.

It also discussed amendments to the agreement with KESC and role of the company in tackling energy crisis.Describing the supply of 650MW by NTDC at concessionary rates as illegal, Zahid Khan stressed that the water and power ministry had no authority to provide this electricity to KESC.Committee members called for stopping 650MW of power supply to KESC and its addition to the national grid in order to ease energy crisis. They asked the water and power ministry to seek legal opinion of the Ministry of Law in this regard.

Zahid Khan termed KESC privatisation deal erroneous, blaming the top brass, which he said would be exposed through an investigation.Senator Humayun Khan Mandokhel pointed out that on the one hand the government provided cushion to KESC while on the other public purse suffered an annual loss of Rs110 billion. He censured power ministry officials for hiding details of the contract with KESC.

Speaking in the meeting, Shahi Syed pointed out that the Finance Division waived billions of rupees worth of liabilities of KESC before its privatisation, but no rationale was given for the step. He termed KESC sell-off a big scam in which influential people were involved.He was asked to call officials of the finance ministry, water and power ministry, NTDC and FBR and seek “details of misappropriation in the privatisation deal”.

The standing committee also expressed resentment over hours-long power breakdown in early hours of Monday, plunging more than half of the country in darkness. It blamed the blackout on ineligibility and negligence of the administration.The committee also took up the issue of promotions in power distribution companies and NTDC, recommending promotions on merit of officers who had been waiting for a long time.

Mandokhel said officials of the power ministry were making fool of people by highlighting a subsidy of Rs3 per unit being given to consumers, but at the same time the ministry hid the fact that it was charging general sales tax, Neelum Jhelum surcharge and fuel price adjustment in electricity bills.