Karachi power consumers denied big relief

Express Tribune

16-02-2025

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KARACHI:
Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Jawed Bilwani, while strongly condemning the recent decision of the National Electric Power Regulatory Authority (Nepra) which deprives Karachi consumers of a significant relief in monthly tariff adjustment, has said that both Nepra and K-Electric (KE) have failed to provide promised benefits to the consumers.
He said Nepra's recent announcement of fuel price adjustment for November revealed a mere reduction of Rs1.23 per unit. "Although this reduction should be seen as a step in the right direction, it falls far short of expectation. Karachi consumers were expecting a much higher relief, given that KE had previously requested a reduction of up to Rs4.98 per unit for November."
He added, "What is even more concerning is the fact that despite the tariff cut being calculated at Rs5.0029 per unit, only Rs1.23 reduction was made for K-Electric consumers. This adjustment left pending a substantial benefit of Rs5.444 billion."
He said both Nepra and KE failed to uphold their commitment to providing consumers with a significant relief during current difficult times.
"Karachi consumers, already burdened by the high cost of living and doing business, are now being further victimised by this injustice. Nepra, which is responsible for protecting the rights of electricity consumers, has fallen short of its mandate by not ensuring that full benefit is passed on to consumers. KE, on the other hand, continues to benefit from these unjustified delays in tariff reduction," he lamented.
While expressing concern over the lack of transparency in the regulatory process, Bilwani said it was highly disturbing that Nepra, after a thorough analysis, failed to enforce the full tariff reduction.
"K-Electric's failure to provide the full benefit of Rs5.444 billion, which could have alleviated the financial burden on people, is nothing short of economic betrayal," he remarked.
He urged both Nepra and KE to take immediate corrective action and ensure that the full benefit of tariff adjustment was passed on to consumers without further delay.
He also called for greater accountability from both organisations to ensure that consumer rights were safeguarded, particularly in the current challenging economic conditions.
"We demand that Nepra and K-Electric not only correct this oversight but also ensure that any future adjustments are transparent, fair and directly benefit people. The business community and citizens of Karachi deserve something better and we will continue to fight for their rights," he said.
Meanwhile, he referred to the dissenting opinion expressed by Nepra Member (Tariff) Mathar Niaz Rana, seconded by Member (Technical) Rafiq Sheikh, who had opposed the limited relief provided to KE consumers.
In his dissent, Rana argued that consumers should have been granted the full benefit of November adjustment, amounting to a reduction of Rs5.0029 per unit, which would have resulted in a direct benefit of over Rs7.215 billion.
"The KCCI fully supports Mathar Niaz Rana's dissenting view. His position represents the voice of Karachi business community and consumers, who are being unfairly burdened," he said, adding that Rs8.7 billion was still under consideration by the authority and yet to be finalised. As of now, Nepra has put the decision on hold, "which is really unusual", he noted.