Over Billing: Export sector complains non-compliance by power utilities

KARACHI: The zero-rated textile export sector has complained the government for non-compliance by power utility companies in giving subsidized rates.

In a letter to Abdul Razak Dawood, Adviser to the Prime Minister on Commerce and Textile Industry, the Pakistan Hosiery Manufacturers and Exporters Association (PHMA) pointed out non-compliance of Para 3 of SRO 12(I)/2019 dated January 01, 2019 by power distribution companies and K-Electric in contravention with the government’s approved policy and subsidized electricity tariff net rate of 7.5 cents / KwH.

It said that power division had revised the electricity tariff for zero rated industrial consumers up to the rate of 7.5 cents /kwh to facilitate the exporters for enhancement of exports and earn precious foreign exchange for the country.

However, the export sector receive the bills for January 2019, which revealed that after dividing the amount payable by total units consumed that the respective electricity providers across Pakistan had been charging around 8.7 cents to 9.1 cents.

Surprisingly the utility providers have been billing in contravention to the government’s approved policy and subsidized electricity tariff net rate of 7.5 cents which is highly deplorable.

The adviser has been requested to intervene in the matter and take up the matter with power division for compliance and enforce the subsidized rates for five zero rated export sectors up to the rate of 7.5 cents in letter and spirit.

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