Karachi, August 8, 2024: Karachi’s business community is gearing up for a major protest against exorbitant electricity bills and excessive taxation. The demonstration is scheduled for Thursday, August 8, at 4 PM, at Regal Chowk in Saddar. If the government fails to address their demands, traders have threatened a three-day nationwide shutdown.
(more…)Tag: electricity tariff
-
Minister Labels Power Tariff Reduction as Eid Gift for Citizens
Federal Minister for Information and Broadcasting, Attaullah Tarar, hailed the recent reduction in electricity tariffs as a special Eid-ul-Fitr gift from the government to the citizens.
(more…) -
Minister Sets April 23 Deadline for Electricity Theft Elimination
Federal Minister for Power, Sardar Awais Ahmed Khan Leghari, has announced a bold deadline of April 23, 2024, for eradicating electricity theft across Pakistan.
(more…) -
KCCI Calls for Drastic Reduction in Electricity Tariffs, Similar to Petroleum Prices
Karachi, October 16, 2023 – The Karachi Chamber of Commerce and Industry (KCCI) is urging the government to implement a significant reduction in electricity tariffs similar to the steps taken in reducing petroleum prices.
(more…) -
Prime Minister Orders Swift Plan to Reduce High Electricity Bills
In a determined effort to tackle the mounting issue of excessive electricity bills, Caretaker Prime Minister Anwaar-ul-Haq Kakar has taken charge by demanding a comprehensive plan featuring tangible steps to rationalize power tariffs.
(more…) -
Jamaat-e-Islami Announces Nationwide Protest Against Soaring Electricity Tariffs
Jamaat-e-Islami on Sunday declared its intent to stage a countrywide protest on Saturday, September 02, 2023, decrying the significant surge in electricity tariff rates.
(more…) -
Pakistan Implements Electricity Tariff Hike as per IMF Agreement
In a move to reduce the deficit and meet the conditions set by the International Monetary Fund (IMF), Pakistan has officially notified an increase in electricity tariffs on Saturday. The decision will affect both industrial and residential consumers.
(more…) -
KE adjusts electricity bills under FCA relief package
KARACHI: K-Electric, the power distribution utility for Karachi, has started providing relief under package to waive Fuel Charge Adjustment (FCA), which was announced by Prime Minister Shehbaz Sharif.
According to a statement issued by the power utility on Tuesday, following PM’s Announcement of FCA’s relief package for the month of June, 1.8 million eligible electricity consumers across KE serviced territory in Karachi and adjoining regions are receiving benefit and being delivered adjusted bills for August at their doorsteps with extended due dates.
READ MORE: Date extension demanded for electricity bills payment
The announcement of June’s FCA relief has come in two parts, it was first announced for Non-ToU Residential Consumers having electricity consumption up to 200 units in June, and later it was extended to the same category of consumers with power consumption up to 300 units in June following the announcement by the Government of Pakistan.
While the revised bills for August are being delivered to the consumers on their premises, it is also important to note that all those eligible consumers who have already paid their non-revised August bills will receive adjusted bills for the month of September.
READ MORE: Power tariff hike termed disaster for industries
Commenting on the matter, Spokesperson K-Electric said, “We are taking every possible measure to pass on the benefit to the qualifying consumers in line with the announcement made by the Honorable Prime Minister.
Following the announcement of the relief package, our customer care centers operated for extended hours and remained open during the weekends for consumers’ convenience.
However, to further ease the procedure for their benefit, we are also delivering the bills to consumers’ doorsteps so that they do not have to visit our centers physically. KE Customers may also download their bills via KE WhatsApp Service, KE Live App and from the company’s website.”
While reiterating the eligibility criteria of the relief package, the Spokesperson further said, “June FCA’s relief applies only to Non-ToU residential consumers who have a power consumption equal to or less than 300 units.
READ MORE: Pakistan petroleum sales slump by 24% in 2MFY23
All the remaining electricity consumers, such as ToU residential consumers, Non-ToU residential consumers having power consumption exceeding 300 units, commercial, and industrial consumers do not qualify for the relief, and thus, are requested to timely pay their bills to avoid late payment surcharge.”
“Our customer care platforms, including our call center 118, 8119 SMS service, and social media channels are also available 24/7 to answer any query from our consumers in this regard,” the Spokesperson further added.
K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005 KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 km square territory including Karachi and its adjoining areas.
READ MORE: New petroleum prices in Pakistan from September 01, 2022
The majority shares (66.4 per cent) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36 per cent) in the company.
-
Karachi Chamber stresses need to rationalize power tariff
The leadership of Karachi Chamber of Commerce and Industry (KCCI) on Tuesday underscored the exorbitantly high electricity tariffs need to be rationalized as the suggested increased electricity tariffs would prove disastrous for trade, industry, SMEs and the public.
Chairman Businessmen Group (BMG) Zubair Motiwala and President Karachi Chamber of Commerce & Industry (KCCI) Muhammad Idrees, while highly appreciating the Prime Minister for taking notice of public and business community’s complaints/ protests on inflated electricity bills.
In a joint statement, Chairman BMG and President KCCI said that the business community was grateful to Prime Minister Shehbaz Sharif for taking cognizance of the electricity tariff but while we appreciate, we would like to apprise that the abnormal increase would actually prove to be a disaster for the industries, especially Small & Medium Size Enterprises (SMEs) who are purely dependent on electricity and no alternate source including gas was available to these energy-starved SMEs.
READ MORE: Political parties responsible for Pakistan economic crisis: KCCI
This country badly needs SMEs who must be promoted at any cost as it is a well-known fact that SMEs are the backbone of any country’s economy so supporting SMEs should be the highest priority of the government, they added.
They further opined that trade cannot absorb this kind of an exorbitant increase in electricity tariff and the commercial users will suffer badly hence it has to be rationalized. The increase had been suggested when the dollar rate jumped from Rs180 to more than Rs240 which was abnormal and due to foul play of exchange players but now as it has come down and was likely to descend further, therefore the increase in electricity tariff was not making any sense at all.
They mentioned that the Karachi Chamber along with Industrial Associations and all Chambers of Commerce of Pakistan were of similar opinion that exorbitant increase in electricity tariffs cannot be absorbed hence, we urge the Prime Minister that this needs a rational exercise and carefully looked into because it can prove to be fatal for many industries and would lead to enhancing unemployment across Pakistan while the exports will also suffer badly from this behest.”
READ MORE: Karachi Chamber demands declaring rain emergency
They also pointed out that although ECC approved electricity rate at US$9 cent per kWh to export-oriented sectors from August 1, 2022 but this decision was withdrawn which was an imprudent move as the cost of doing business in Pakistan was already too high as compared to regional competitors.
The government must keep in mind that during the last two months, the exports have been constantly decreasing hence, electricity rate at US$9 cents per kWh to export-oriented sectors must continue otherwise the country’s exports would keep on descending and create more problems for the economy particularly the rising unemployment.
While stressing the need to continuously support the exports, Zubair Motiwala and Muhammad Idrees requested that before issuance of any kind of notification, Prime Minister should look into this matter on an urgent basis so that the uncertainty which has been now triggered due to the electricity tariff hike announcement could come to an end.
They also appealed the Prime Minister to look into NEPRA matters as many decisions taken by NEPRA were purely against the consumers and in recent history, the regulator has never favored the consumers. Why is it that all the decisions taken by NEPRA favor DISCOs and KE only.
READ MORE: KCCI demands release of stuck up containers
This also needs to be seen and the recent decisions of charging FCA and bringing back the fixed charges, which were abolished long time ago but have been arbitrarily reintroduced, must also be deferred.
As consumers’ point of view was never being taken seriously at the so-called public hearing, Chairman BMG and President KCCI demanded that NEPRA rules must be redefined and out of NEPRA’s penal of three judges at the Public Hearings, one should be a representative of consumers through Chamber’s recommendation.
In the end, they reiterated that all actions taken by NEPRA should be remanded back and those in pipeline should also be stopped forthwith.
-
NEPRA to conduct public hearing on KE’s petition on July 28
KARACHI: National Electric Power Regulatory Authority (NEPRA) has announced to conduct a public hearing on July 28 over the petition submitted by K-Electric on Fuel Charges Adjustments (FCA) for June 2022.
The utility has sought an increase of Rs11.38/KWh in its FCA petition for June 2022. As per applicable tariff across the country, fuel adjustment is reviewed every month and is applicable on consumer bills for only one particular month.
READ MORE: Revised power tariff, taxes on electricity bills in Pakistan
The major impact on the monthly Fuel cost adjustment of June 2022 is due to an increase in the fuel price increase of Furnace Oil and power purchased from CPPA-G.
The price of RLNG in June 2022 has increased by 50 per cent from March 2022. The price of RLNG as at June 2022 is Rs4,627 / MMBTU as compared to the price of Rs3,083 / MMBTU in March 2022.
The price of electricity from CPPA-G in June 2022 has increased by 74 per cent from March 2022. The price of power purchased from CPPA-G as at June 2022 is Rs15.844/KWh as compared to the price of Rs9.098/ KWh in March 2022.
READ MORE: K-Electric, Siemens sign deal for KKI Grid construction
Fuel Charge Adjustment (FCA) is incurred by utilities due to global variation in fuel prices used to generate electricity and change in the generation mix. These costs are passed through to the consumers following NEPRA’s scrutiny and approval and are one-time charges. Consumers also receive a benefit when the cost of fuel decreases.
After the public hearing and scrutiny, the regulator will make a decision on the request and issue instructions on the period during which these costs can be applied to consumer bills.
READ MORE: Rupee devaluation severely affects KE’s profitability
K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005 KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 square Kilometre territory including Karachi and its adjoining areas.
The majority shares (66.4 per cent) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36 per cent) in the company.