KE refutes the misconception prevailing in the market as the power utility ensures compliance with prescribed laws and regulations and follows due process, seeking clarity wherever applicable on implementation of directives from relevant authorities.
The Ministry of Energy (Power Division) through SRO 12(I)/2019 dated January 01, 2019 provided special relief to zero-rated industrial consumers by reducing their tariff level to 7.5 cents/kWh. KE is in compliance with the said notification and has timely obtained and acted on the necessary guidance issued by the Ministry of Energy (Power Division) in this regard.
To facilitate the industrial associations, K-Electric has also sought clarity about the inclusion of the various surcharges including but not limited to the fuel charge adjustment, taxes, fixed charges and financial cost surcharge.
Following consideration by the Federal Government, it was clarified that the concessionary rate of 7.5 cents/kWh for zero-rated industrial customers was only limited to the extent of the tariff notified through SRO Nos 01-10 dated January 2019 and SRO No. 11(1)/2010 and all other charges were to be duly charged to industrial customers. This decision of the authorities has been communicated for immediate implementation by all electricity distribution companies across Pakistan (Discos).
It is also important to highlight that subsequent to the withdrawal of SRO 1125 (I)/ 2011, which provided mechanism for eligibility for zero rated tariff, on June 29, 2019, the Federal Board of Revenue has also directed that the special relief can only be provided to industrial consumers who possess a zero-rating validation certificate from the Commissioner-Inland Revenue. This direction of FBR is based on Lahore High Court's order dated October 09, 2019 and has also been endorsed by the Sindh High Court on February 24, 2020. As a law-abiding corporate entity, KE is in compliance with the directions issued in this regard and is extending the exporters relief to consumers who meet this criteria. While there has been discussion in the media about its revision and applicability, KE has not received any notification in this regard for implementation.
The power utility remains committed to powering industrial growth and accelerating the socioeconomic development of Pakistan's industrial hub: Karachi. Over the years, the power utility has taken several initiatives to facilitate industrial customers, including 100 percent exemption from load-shed, investing in infrastructure to meet their growing power demand, reducing turnaround time to provide new industrial power connection, conducting energy audits to help them improve their energy efficiency and increased progress towards the installation of automated meter reading (AMR) to increase transparency.
KE's efforts to reduce turnaround times and documentation requirements for new connections, load extensions and load regularization applications of industries contributed significantly to improving Pakistan's ranking by 36 points from 2018 to reach 108 in the World Bank's ease of doing Business Index in 2019.-PR