Karachi, September 3, 2024 – The Karachi Chamber of Commerce and Industry (KCCI) has urged the National Electric Power Regulatory Authority (NEPRA) to convene an urgent hearing to address the mounting concerns related to K-Electric (KE).
In a letter addressed to the NEPRA chairman, KCCI President Iftikhar Ahmed Sheikh highlighted the significant financial burden imposed on both industrial and domestic consumers in Karachi due to various KE-related issues.
Sheikh emphasized the unjust imposition of the Power Holding Limited (PHL) surcharge of Rs 3.23 per unit on Karachi consumers, despite their non-participation in the circular debt. He urged NEPRA to review and reconsider the continuation of this surcharge. Additionally, the KCCI pointed out the disparity in the fuel adjustment applied by KE compared to other distribution companies in Pakistan. While other companies pass on minimal fuel adjustments, KE imposes significantly higher amounts, ranging between Rs 3 to Rs 5 per unit. This inconsistency and the application of quarterly adjustments exacerbate the financial strain on Karachi’s consumers.
The KCCI also highlighted the outstanding Rs 33 billion incremental subsidy promised to industries during the COVID-19 pandemic, which remains unpaid. This delay is causing severe cash flow issues for businesses, further worsening the economic difficulties due to high electricity costs. The additional surcharge of Rs 1.52 per unit, in conjunction with the PHL surcharge and fuel adjustments, significantly inflates electricity bills. This surcharge, which is set to end in October or November, is uniquely imposed on Karachi consumers, with no similar surcharges applied elsewhere in the country.
Addressing these issues could provide considerable relief to Karachi’s consumers, potentially reducing electricity costs by Rs 7-8 per unit. Such a reduction would alleviate operational costs for industries and make electricity more affordable for households.
In light of these critical issues, the KCCI respectfully requested NEPRA to convene a hearing involving stakeholders from Karachi, the Minister of Power, Secretary Power, K-Electric, and relevant Ministry officials to address these concerns urgently.
