FPCCI lashes out at Nepra over ‘anti-economy policies’, lack of reforms in sector

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the apex body of entire trade, industry and service sectors of the country has shown its strong resentment against the profound imbalanced decision made by NEPRA including recent one in respect of fixed charges.

Acting President Suleman Chawla in his letter to Tauseef H Farooqi, Chairman NEPRA apprised that the apex trade body of the country is responsible for over 80 percent of the contribution to the national GDP and over 90 percent contribution to export, import and tax receipts.

It is mandated to serve as a bridge between private sector and the government to stimulate economic activity, promote exports and encourage foreign investment and make interventions where deem necessary such as are being made by inviting attention of NEPRA towards unjust decisions against the economy of Pakistan.

Suleman Chawla has asked NEPRA for immediate reinstatement of the earlier position in respect of fixed charges to read as actual recorded maximum demand by metering and the actual consumption.

He said that business community is already victim of highest inflation of the history, which in major is contributed by high cost of energy through profound unfair decisions made by NEPRA.

Acting President in his letter to Chairman NEPRA said that NEPRA is responsible for adverse impacting of economy due to decisions made by NEPRA against the economy of Pakistan, remaining least concerned to the reforms in energy sector.

He said that the controversy is also generated by NEPRA by changing the earlier continued mechanism since decades in respect of fixed charges based on actual MDI. Same needs to be reinstated to dilute the ongoing severe agitation against the anti-consumerism by NEPRA.

He further said that NEPRA has realised the mistake and is holding the consultative session to re-determine “whether the existing fixed charges applicable needs to be revised and require any change in the mechanism for charging such charges on actual MDI.”

Engr M A Jabbar Vice President FPCCI talking to this scribe to comment on the letter sent by Acting President Suleman Chawla to Chairman NEPRA said that the reinstatement of earlier position to charge at actual MDI, in specific will reduce one of the illogical overburden created by wrong decision of NEPRA, who are already extra overburdened by high based tariff hike, FPA, Qtr Tariff Adjustment thereof etc. as and when NEPRA likes to make decisions which are highly unfair decisions to the detriment of economy of Pakistan. Economic security is dependent on energy security, which has been infringed upon through extremely criticised decisions by NEPRA.

Engr M A Jabbar further said that FPCCI being the apex body of trade and industry and service sector, custodian of protecting the economic interest of the private sector economy of the country is of the firm view that instead of persuading power sector reforms by NEPRA, the only option exercised by NEPRA is to extort consumers and register itself as non-consumer friendly regulator, which we state as a matter of brevity with deep respect for the regulator.

He said that needless to refer to the self-financing schemes by Discos and vertically integrated K-Electric including O&M costs from the consumer at each and every small, medium and high repair and capital equipment procurement charges from consumers.

Engr M A Jabbar suggested that NEPRA should open a separate investigation and commission a study for forensic, technical and financial audit is most likely to conclude “Pass over of self-finance investments of consumers to DISCOs and K-Electric may even consider the exclusion of fixed charges at actual MDI from the bills.”

Vice President FPCCI further said that deficient power in the system does not assure the reserved power and if there is any increase in MXD above sanctioned load, the utility can always correct this position by asking a consumer to raise the extra sanctioned load deposits.

He also said that utilities do not compensate consumers for the losses incurred in the event of load shedding, quality less supply and interruption for any reason, which again is a unfair contract between seller and purchaser.

Further floods, present economic situations, low growth projection by IMF 2.5 percent is generating either no MXD or very low MXD for many small and medium enterprises in rural and urban centres due to no or lower productions or low and high seasonal operating production systems. Alone K-Electric in specific cannot insist for 50 percent of the connected load as fixed charges because it will severely dent MYT and moreover reportedly it has collected deposits for 12000 Megawatt sanctioned load, the question will arise whether it can supply so or continue to take the advantage of undue and huge deposits against the supply constraints.

Acting President Suleman Chawla in his letter to Chairman NEPRA has demanded immediate restoration of fixed charges on actual maximum demand and actual consumption and restrain itself from making imbalance decisions.

Copyright Business Recorder, 2022