Extra power for KE’s industrial users: Govt fails to implement its ‘support package’ decision: PALSP

ISLAMABAD: The government has failed to implement its decision of extending support package for additional consumption of power for K-Electric’s industrial users despite continuous push from the PM Office (PMO).

Industry stakeholders argue that being a major consumer of electricity, the steel industry of Karachi is the worst hit as a result of government’s failure to implement its decision.

The industrial consumers of different industries in Karachi are not getting the benefit of the “Incremental Concessionary Consumption Package” since July 2021 as compared to all other industries located in the rest of the country (consumer of other DISCOs) which is a blatant discrimination against the Karachi based industry. “As a result of inordinate delay in resolution of this matter, which is sheer discrimination, the Karachi based members of PALSP, have moved court on the matter,” said the steel industry.

The incremental package is being given to KE by the federal government which is not passing onto its industrial consumers despite the fact that no stay has been granted by the Sindh High Court and NEPRA Appellate Tribunal, from 1st July, 2021 as per Nepra’s “original order” and “review order,” said Pakistan Association of Large Steel Producers (PALSP).

According to section 12G (5) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, Nepra has not directed any orders suspending its decisions (Original Order and Review Order). So, the Original Order as notified by Nepra is legally in field therefore it must be complied by KE in letter and spirit in accordance with its terms, ie, from 1 July, 2021.

PALSP has claimed that earlier KE had submitted appeals to review Nepra order of January 11, 2022 (Original Order) and as a result the Review Order May 27, 2022 was issued. Nepra order has also been published in the official gazette SRO No. 659 (I)/2022 dated May 27, 2022(the Notification).

The association has further claimed that the steel industry has knocked every door including courts, decision/policy makers sitting in relevant ministries – but the outcome has been nil. For example, Meltable scrap comprises 75% of the total cost of production, whereas electricity portion consists of 15% of the total cost for producing steel.

“Steel sector that is going through a tough time and non-availability of incremental consumption package has added to the problems being faced by the industry. This discrimination has disturbed level playing field and fair competition between industries located in Karachi sand those located in the rest of the country.

If the situation continues and the facility is not enforced for KE consumers, the cost will further increase and situation will get worse,” PALSP warned.

Copyright Business Recorder, 2022