Incremental concessionary tariff: PALSP for ending ‘discrimination’ against Karachi’s trade, industry

ISLAMABAD: Pakistan Association of Large Steel Producers (PALSP) has sought Prime Minister and Power Minister’s help to end discrimination against Karachi-based industry in incremental concessionary tariff as compared with industry in the rest of the country.

In a letter to Prime Minister and Power Minister, Syed Wajid I Bukhari, PALSP Secretary General, stated that the Association was forced to petition them as Karachi-based industry is being discriminated against in comparison to industry in the rest of the country. Industry is already under enormous pressure due to unprecedented floods in the country, and particularly in Sindh, he added.

According to the letter industrial consumers of Karachi are not getting benefit of the “discount on incremental consumption package” since July 2021 as compared to industries located in the rest of the country (consumers of other Discos) which is discriminatory against Karachi/ Sindh based industries and is disturbing the level-playing field and fair competition amongst the industries located in different parts of the country.

PALPA arguing on behalf of the Karachi/ Sindh-based industry contended that it has knocked the doors of all the concerned departments/ ministries for issuance of notification to avail the facility which is the legitimate right of the Sindh-based industries, but in vain.

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The Association maintained that the steel industry is already going through hard times and is on brink of collapse due to bad economic situation, depreciation of currency, high inputs cost, colossal increase in financing cost and market uncertainty. In this situation, the incremental concessionary facility was like a breather but unfortunately the Karachi/ Sindh based industry is unable to get benefit of this facility and it’s a “great dilemma in Pakistan that we have to struggle hard for getting our legitimate right.”

The incremental package was first introduced in November 2020 which was applicable till June 30, 2021 and immediately thereafter ECC approved the extension of this package in August 2021, making it applicable from July1, 2021 to October 31, 2023. After application of Power Division to the Regulator, NEPRA notified the decision on January 11, 2022 via order No. NEPRA/ R/ ADG (Tariff)/TRF-100/498-500.

Dissatisfied with NEPRA ruling, KE submitted a review application and NEPRA notified its review decision on May 11, 2022 and consequently issued SRO on May 27, 2022.

KE has challenged the NEPRA review decision at Sindh High Court via CP 3023/2022 and got the stay against NEPRA decisions. The case is pending since long and all industries of Karachi are suffering due to this.

In order to resolve this disparity, PALSP has sought immediate intervention to resolve this issue pending for over one year.

Copyright Business Recorder, 2022