ISLAMABAD: All Pakistan Processing Mills Association (APPMA) has strongly opposed approval of Rs 68 billion write-off claims of K-Electric, saying that these have no justification.

Chairman APPMA, Anwer Aziz offered these comments in a letter to Nepra, saying that KE’s petition scheduled to be considered on November 28, 2024 must be rejected as Karachi’s consumers already pay the highest electricity costs in Pakistan.

Aziz further said those write-offs would exacerbate financial strain and further erode public trust, adding that KE had failed to release the Rs 33 billion Covid subsidy promised to Karachi consumers.

The Association argued that until the issue of Covid duration subsidy is resolved, any additional claims from KE should not be considered.

APTPMA demands govt reduce gas, electricity tariffs

“It is surprising that KE could not even provide ID cards of consumers for whom the claims were written off. This is a blatant violation of Nepra’s Consumer Service Manual and raises serious questions including were these subsidies and write-offs granted to unidentified or non-existent entities?

APPMA demand is to reject KE’s write-off claims entirely as these claims lack justification and accountability. Nepra should protect consumers from additional financial burdens. “Not a penny should be paid from consumer bills or through government subsidies,” he continued.

The Association has demanded that the pending Rs 33 billion Covid subsidy must be deducted from KE’s claims and credited directly to Karachi’s industrial and commercial consumers. Nepra must hold KE accountable for its operational inefficiencies and require the utility to address its recovery mechanisms instead of penalizing consumers.

Anwer Aziz maintains that Karachi’s residents and industries cannot bear any more financial strain. Nepra must ensure these claims are not converted into further surcharges or tariff adjustments. Karachi’s consumers already pay the highest electricity costs in Pakistan, approving these write-offs would exacerbate this financial strain and further erode public trust.

Copyright Business Recorder, 2024