K-Electric (KE) has requested a tariff increase of over Rs3 per unit due to fuel charges adjustment for July 2024. The National Electric Power Regulatory Authority (Nepra) held a public hearing on Thursday to discuss the request. Industrialists criticized the disparity between KE’s fuel charges adjustment and those of state-owned power distribution companies (DISCOs), which have widened significantly.
Rehan Jawed, representing the Korangi Association of Trade and Industry, praised KE for securing the lowest tariff in Pakistan’s history for its renewable energy projects. However, he pointed out that the government’s failure to adopt a similar competitive bidding process earlier has led to the current energy crisis.
Jawed argued that the fuel charges adjustment of Rs3 per unit would lead to unsustainable financial strain on industries, making it difficult for Karachi industries to compete with their counterparts in Punjab. He suggested fixing the fuel adjustment at Re1 per unit until the KE tariff is finalized, with the rest covered through a government subsidy.
Tanveer Barry of the Karachi Chamber of Commerce and Industry echoed similar concerns, denouncing the gas allocation policy and discrimination faced by Karachi industries. He called for an end to the “mistreatment” of Karachi’s business community.
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