Fuel adjustment formula: business community opposes electricity tariff hike

29 Mar, 2010

The business community has expressed disquiet about the proposed 1.02 percent increase in electricity tariff, with effect from April 1, as fuel adjustment formula and warned the government to refrain from doing so in the larger interest of the industry.
"It will not serve the purpose but it will lead to closure of more industrial units and increase unemployment in the country," President of Multan Chamber of Commerce & Industry (MCCI) Malik Asrar Ahmed Awan said.
He said that electricity tariff were being increased by 1.02 percent under the IMF programme for commercial as well as industrial consumers. The MCCI President vehemently opposed the proposed increase and said the industry, which is already facing multiple problems could not afford another increase in electricity tariff. He said increase in electricity tariff is unacceptable and business community would oppose it at all levels.
He alleged that the rulers seem hell bent on destroying the national economy under IMF pressure. Chairman Pakistan Cotton Ginners Association, Haji Muhammad Akram said that Pakistan was facing the worst economic crisis because of terrorism and all industrial and well as business activities have come to a halt, while the government, instead of providing relief, was increasing electricity tariff. "The proposed hike in electricity will force businessmen to close small units like ginning factories," Akram said.
Secretary General of All Pakistan Power looms Association (APPLA) Khalid Qandeel Ansari said no one could expect such an unfair and imprudent decision from an elected government like PPP that proclaims to serve the people. He said the government, instead of resisting IMF pressure was hurting its own people.
President of High Court Bar Multan, Qamar-uz-Zaman Butt said National Electric Power Regularity Authority (Nepra) was not authorised to suggest imposing fuel adjustment formula or enhancing the electricity tariff while Nepra had issued the direction for increase in the tariff. He asserted that under Article 157-D of the constitution, the federal government or Nepra had no authority to determine electricity tariff as the provincial governments could do so. He pleaded that even the formation of Nepra was in violation of Article 157-D of the constitution and requested its abolishment.

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