PM urged to expedite Rs23bn power bill relief
KARACHI: President Karachi Chamber of Commerce & Industry (KCCI) Muhammad Jawed Bilwani has appealed the Prime Minister Shehbaz Sharif to ensure that the long-pending relief of Rs23 billion in the electricity bills on incremental consumption is released without further delay by duly incorporating provision in the forthcoming federal budget for FY 2025–26.
Despite being allocated in previous budgets, the relief has yet to be disbursed, causing severe financial stress to the Karachi's industrial sector only as this relief has been provided to the rest of the country.
In a formal letter addressed to the Prime Minister, President KCCI acknowledged the government's efforts to address challenges faced by the business community and improve Pakistan's economic landscape.
However, he expressed grave concern over the delay in releasing the subsidy for incremental electricity consumption from July 1, 2021, to October 21, 2023, stressing that Karachi's industries continue to bear the brunt of administrative and legal setbacks.
He pointed out that the total subsidy amount for the period is Rs33 billion, of which Rs23 billion is undisputed and should have been disbursed.
Budgetary allocations were already made in FY 2021-22 (Rs22 billion), FY 2022-23 (Rs13 billion), and FY 2023-24 (Rs7 billion), but the funds have not reached the intended recipients due to procedural and legal delays involving K-Electric.
'K-Electric operated without a stay order for nearly nine months yet failed to pass on the subsidy to consumers,' said Bilwani, pointing to the lack of enforcement by NEPRA and subsequent legal hurdles that have prolonged the crisis.
He added that despite the dismissal of KE's appeals by a Tribunal in July 2024, the matter stands stalled due to a stay order granted by the Islamabad High Court.
KCCI emphasized the need for immediate verification of the subsidy figures by the Power Division and NEPRA, urging the government to ensure that the verified amount is reflected in the upcoming federal budget.
More importantly, KCCI proposed that the undisputed Rs23 billion be released directly to industrial consumers rather than through KE, in order to prevent further delays.
'This is not just a matter of legal obligation; it is a question of economic justice and national interest,' Bilwani stated.
'Ensuring that Karachi's industries receive this long-overdue relief is essential for sustaining industrial operations and maintaining economic stability across Pakistan', he added.
Jawed Bilwani hoped that the Prime Minister will intervene swiftly to resolve the issue, restore confidence in government policy, and deliver the much-needed support to Karachi's industrial backbone.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
18 hours ago
- Business Recorder
PMO asks PD for recovery-based loadshedding update
ISLAMABAD: The Prime Minister's Office (PMO) has sought an update from the Power Division on its proposed policy to legalize recovery-based loadshedding, amid continued penalties imposed by the National Electric Power Regulatory Authority (Nepra) on Distribution Companies (Discos) and K-Electric for implementing such load management practices in violation of regulatory laws. This initiative is part of a broader reform agenda assigned to the Power Division by the Prime Minister, aimed at removing legal barriers to unscheduled power load shedding across the country. However, the Ministry of Finance (MoF) has expressed reservations about the plan. It argues that while load shedding may help avoid high electricity costs in low-recovery areas, the government remains liable for capacity payments on unutilized electricity—making the overall economic rationale questionable. HCSTSI condemns HESCO over increased load-shedding At a public hearing on Fuel Cost Adjustment (FCA) last year, Nepra Chairman Chaudhry Waseem Mukhtar confirmed that revenue-based load shedding is currently illegal, which is why the regulator is penalizing utilities for enforcing it. He suggested that the government must legalize the practice if it intends to continue its implementation. Following the Chairman's remarks, the Power Division began drafting a proposal titled 'Amendments in Legal Framework to Implement Economic Load Management in the Country.' The proposal aims to embed recovery-based and Aggregate Technical and Commercial (AT&C) loss-based load shedding into the legal and regulatory structure. According to the Power Division, Prime Minister Shehbaz Sharif chaired a series of meetings on April 15, 18, and 25, 2024, during which he directed the division to review and suggest necessary amendments to existing laws and policies. A committee comprising representatives from the Private Power and Infrastructure Board (PPIB), Central Power Purchasing Agency (CPPA), Law Division, Nepra, and independent legal experts was formed to carry the initiative forward. The Power Division circulated a draft summary to relevant ministries for feedback before submitting it to the Economic Coordination Committee (ECC), Cabinet Committee on Energy (CCoE), or the federal cabinet for approval. In its feedback, the Finance Ministry noted the summary lacked empirical data to substantiate the claimed benefits. It stressed that while load shedding in high-loss areas may be justifiable to an extent, the fiscal impact of paying for idle generation capacity remains a major concern. The Power Division, however, maintains that Discos are compelled to implement load shedding in high-loss areas due to economic constraints. With rising electricity costs from the central power pool, continuing to supply expensive power to areas with poor recoveries is financially unsustainable. Therefore, it argues, a structured and legally sanctioned load shedding mechanism is essential for the sector's financial viability. Nevertheless, sources suggest that Nepra remains opposed to the proposed amendments and has raised serious objections. The Finance Division reiterated its stance, emphasizing the need for the Power Division to present a detailed comparative analysis of the economic trade-offs involved. The Cabinet has asked the Power Division to clearly explain the advantages of such a policy, particularly in terms of cost avoidance and system sustainability. Copyright Business Recorder, 2025
Business Recorder
18 hours ago
- Business Recorder
K-Electric urges govt to take control of 300 loss-making feeders
KARACHI: K-Electric wants the government to take control of 300 loss-making feeders, out of a total of 2,129, to make the city load-shedding-free, following criticism from government quarters, including the National Assembly's Standing Committee. Monis Alvi, Chief Executive Officer (CEO) of K-Electric, during a session with a group of journalists on Saturday, urged the government to establish a recovery mechanism for revenue -deficient distribution feeders, assuring that K-Electric would support the government's initiative to eliminate power outages in the metropolitan city. Alvi said that the company is willing to supply electricity to these loss-making feeders, provided the government takes responsibility for recovery operations. The CEO faced criticism from the National Assembly's Standing Committee on Power as well as the Sindh Assembly amid rising temperatures exceeding 41°C. The power utility has reportedly increased load-shedding in areas where transmission and distribution losses have reached 70 percent or higher. 'If the government takes control of these loss making 300 feeders, we would be very close to making Karachi load-shedding free,' Alvi said confidently. He explained that these 300 feeders account for 87 percent of the total losses incurred by the company, mentioning that 70 percent of the city is already exempt from power cuts. Regarding the new Multi-Year Tariff (MYT) for the supply segment from FY2024 to FY2030, Alvi said these determinations will not affect the electricity rates charged to customers, as these continue to be governed under the uniform tariff policy applicable across Pakistan. This decision marks a significant milestone for KE towards realizing its comprehensive investment plan 2030 that entails the company's efforts to further reduce losses in transmission and distribution network, drive growth in its customer base, and bolster power utility's infrastructure to meet current demands and future needs. He said that with the implementation of the renewed MYT, Karachi could become up to 90 percent load-shedding free by 2030. He noted that increased economic activity has led to a rise in electricity demand in Karachi and confirmed that K-Electric currently has the capacity to supply 4,500 megawatts of electricity to the city. By 2030, the number of electricity consumers in the city is expected to reach 5 million. The CEO expressed confidence that the utility would expand its transmission capacity to 5,000 megawatts. 'K-Electric currently has the capacity to supply 4,500 megawatts.' Alvi also mentioned that K-Electric is prepared to connect captive power industries to the grid and provide them with electricity. He added that the utility is willing to adhere to the agreed timeline for transitioning captive power users to the grid, in coordination with the government and relevant stakeholders. Copyright Business Recorder, 2025
Express Tribune
a day ago
- Express Tribune
K-Electric proposes formula for loadshedding-free Karachi
Listen to article K-Electric has proposed a formula to eliminate electricity load-shedding in the metropolitan city. Three hundred out of 2,129 feeders in the metropolis account for 87% of power losses, which is the main reason for blackouts, KE's CEO Moonis Alvi said while speaking to a delegation of the Council of Economic and Energy Journalists (CEJ) on Saturday. 'If the government takes over these 300 feeders and manages the internal electricity distribution in these areas, K-Electric will be much closer to making Karachi load-shedding-free,' Alvi said, adding that KE is ready to supply electricity to these 300 feeders, but the responsibility for bill recovery from these areas would rest with the government. CEO Alvi claimed that 70% of Karachi is already exempt from load-shedding. K-Electric is working on introducing new technology to prevent power pilferage from feeders. He warned that any tampering with PMTs (Pole-Mounted Transformers) could lead to technical faults that may take up to three days to fix. He reiterated the offer to the government to help manage the internal electricity system in these areas. The KE CEO further stated that K-Electric's Multi-Year Tariff (MYT) will not adversely affect ordinary consumers. Rather, it will encourage foreign investment in the city's power supply system. 'The National Electric Power Regulatory Authority will review the MYT each year based on the level of investment,' he added. Alvi said that implementation of the MYT could make Karachi up to 90% load-shedding-free by 2030. By then, the number of power consumers in the metropolis is expected to reach five million, and power transmission will increase to 5,000MW. Responding to a question, Alvi said that KE is ready to supply electricity to captive power industries by connecting them to the grid. "We are prepared to follow the agreed timeline with the government and stakeholders for this transition." Industrial activity in Karachi has increased over the past few months, leading to a rise in electricity demand, he added.
