Power tariff hike termed disaster for industries

Power tariff hike termed disaster for industries

KARACHI: SITE Association on Industry on Saturday termed the significant power tariff as disaster for industries.

Abdul Rasheed, President Site Association of Industry, while expressing deep concern over the massive hike in power tariff, Fuel Adjustment Cost (FAC) and reintroduction/ increase in fixed charges, has termed this unbearable upsurge in electricity tariff as disastrous for the industries.

In an appeal to Prime Minister Shahbaz Sharif and Federal Minister for Power Engr. Khurram Dastgir, SAI chief demanded to immediately withdraw FAC, fixed charges and increase in electricity rates to continue uninterrupted production activities, otherwise it will be impossible to run the industries due to cost overrun.

“The business community cannot bear the extraordinary increase of 80pc in electricity rates, rather industrialists will be forced to close their units as a result of this move, as they are not able to bear this huge increase in electricity rates,” he said, adding that the base tariff has been increased by Rs 9.8972 per unit, which has increased the price per unit from Rs 19 to around Rs 30 per unit.

Apart from this, 17pc sales tax and income tax will also be applicable on this increased basic tariff of Rs.30 per unit of electricity. When all these components are combined, an unbearable minimum impact to 80 per cent.

SAI president further said that various tariffs for industries suspended in the past under the policy of peak and off-peak hours have been reinstated once again. This will increase the production cost of the industries enormously. In such a case, the industrialists can reduce their production by 50 per cent because they cannot bear this burden in the severe economic crisis in the country.

Abdul Rasheed requested the Prime Minister and Minister Power to avoid excessive increase in fuel adjustment charges (FAC), fixed charges and electricity tariffs in the best interest of the economy and to save the industries from destruction.

It should be withdrawn immediately so that the anxiety of the industrial community can be removed, and they can continue their productive activities with satisfaction and create ample employment opportunities.