KARACHI: President Karachi Chamber of Commerce and Industry (KCCI) Iftikhar Ahmed Sheikh has urged Chairman National Electric Power Regulatory Authority (NEPRA) Waseem Mukhtar to exercising his powers to call a hearing and address the issues faced by Karachi’s 25 million electricity consumers.
In a letter to Chairman NEPRA, Iftikhar Ahmed Sheikh has said formally request an urgent hearing involving all relevant stakeholders to address pressing issues related to K-Electric (KE). These issues have been significantly impacting both industrial and domestic consumers in Karachi, and a collaborative resolution is essential for the economic well-being of our city.
PHL Surcharge (PKR 3.23 per Unit): The imposition of the Power Holding Limited (PHL) surcharge of PK 3.23 per unit has introduced a substantial financial burden on Karachi consumers. This surcharge is applied despite Karachi's consumers not being participants in the circular debt, making its collection unjust. We urge NEPRA to review and reconsider the continuation of this surcharge.
Fuel Adjustments by K-Electric: There is a notable disparity in the fuel adjustments applied by K-Electric compared to other Distribution Companies (DISCOs) in Pakistan. While other DISCOs are passing on minimal fuel adjustments, K-Electric imposes significantly higher adjustments, ranging between PKR 3 to PKR 5 per unit. This inconsistency and the application of quarterly adjustments exacerbate the financial strain on Karachi's consumers. We recommend standardizing fuel adjustments across all DISCOs and KE as UNIFORM as All over Pakistan FCA will remain negative or minimum, or tailoring them to reflect the actual costs incurred by K-Electric.
Incremental Subsidy during COVID-19 (Pending PKR 33 Billion for Industries): The PKR 33 billion incremental subsidy promised to industries during the COVID-19 pandemic remains unpaid. This delay is causing severe cash flow issues for businesses, worsening the economic difficulties due to high electricity costs. We request NEPRA to facilitate an expedited resolution and disbursement of these funds.
PKR 1.52 Surcharge Issue: The additional surcharge of PKR 1.52 per unit, in conjunction with the PHL surcharge and fuel adjustments, significantly inflates electricity bills. This surcharge, which is set to end in October or November, is uniquely imposed on Karachi consumers, with no similar surcharges applied elsewhere in the country. We urge NEPRA to address this inconsistency and eliminate this surcharge.
5: Potential Relief of PKR 7-8 per Unit: Addressing these issues could provide considerable relief to Karachi’s consumers, potentially reducing electricity costs by PKR 7-8 per unit. Such a reduction would alleviate operational costs for industries and make electricity more affordable for households.
In light of these critical issues, he respectfully request NEPRA to convene a hearing involving stakeholders from Karachi, the Minister of Power, Secretary Power, K-Electric, and relevant Ministry officials to address these concerns urgently.
Copyright Business Recorder, 2024