ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has expressed its dissatisfaction with the Power Division for failing to resolve the longstanding issue concerning Zero Rated Industry (ZRI) operating in the Lasbela Industrial Estate Development Authority (LIEDA), Balochistan.

In a letter addressed to the Secretary of Power Division, Nepra Chairman Waseem Mukhtar noted that the Secretary General of the All Pakistan Textile Association (APTMA) had filed a complaint on behalf of seven ZRI consumers operating in LIEDA. This complaint, sent to the Power Division on April 3, 2024, outlined the issues faced by these consumers.

The letter mentioned that, following the complaint, the matter was taken up with K-Electric (KE), which confirmed that, in accordance with a decision by the Economic Coordination Committee (ECC) on December 10, 2021, Automated Meter Reading (AMR) meters were installed and activated at the premises of the ZRI consumers in LIEDA.

APTMA seeks concessional power for LIEDA

The consumption data was recorded by these meters, and a claim for eligible consumers in LIEDA was submitted to the Ministry of Energy (Power Division) for consideration. However, no further progress or updates have been provided by the Power Division.

“Nepra has requested the Power Division to resolve this issue and issue the necessary directions, as requested by KE, to facilitate the disbursement of relief to the eligible ZRI consumers of LIEDA. However, the response from the Power Division is still awaited,” stated Chairman Nepra.

In a letter dated October 24, 2024, APTMA again approached Nepra Chairman, submitting a claim amounting to Rs. 1,019,539,234 under the ZRI relief package. APTMA urged the Power Division to expedite the matter in accordance with the law.

Furthermore, APTMA, in its letter to the Secretary of the Power Division, referred to Nepra’s letter of November 6, 2024, which explained that in January 2019, the Government of Pakistan notified Regionally Competitive Energy Tariffs (RCET) for all export-oriented industries across the country.

The relevant SRO was withdrawn in March 2023. During the period from January 2019 to March 2023, eligible consumers nationwide benefitted from the RCET, except those located in LIEDA, Hub, Balochistan, and certain other eligible consumers in industrial estates. However, all consumers outside LIEDA were subsequently granted access to the facility by various DISCOs, depending on their territorial jurisdiction.

According to APTMA, the main reason given previously for the denial of RCET to LIEDA consumers was that LIEDA is not covered by any DISCO, and, as such, the power consumption of these consumers could not be verified.

However, during the current complaint proceedings, K-Electric confirmed that the eligibility of the complainants was verified through metering and billing conducted by LIEDA, as well as AMR check meters installed by KE. The data collected from these meters has been validated as accurate, with claims based on the verified information, including double verification from Sales Tax returns. Nepra has also vetted and verified these claims.

In similar cases, such as the Sundar Industrial Estate in the LESCO jurisdiction, consumers were initially denied the same benefit. However, the Lahore High Court intervened and instructed Nepra to resolve the issue. Following this, NEPRA issued clear instructions to LESCO to lower the billing in accordance with the ECC and Cabinet-approved notification for export-oriented companies.

Aptma has expressed disappointment that LIEDA consumers have been deprived of their legitimate dues through no fault of their own. This issue has remained unresolved for a prolonged period.

“Despite our initial efforts to raise this matter with the Power Division, numerous meetings, and extensive correspondence over several years, there has been no resolution. Consequently, we escalated the issue to Nepra. In light of NEPRA’s correspondence, we request that the Power Division instruct K-Electric to adjust the pending amounts in the power bills of LIEDA consumers,” said Shahid Sattar, Secretary General of APTMA.

Copyright Business Recorder, 2024