President Federal B Area Association of Trade and Industry
(FBATI) Shaikh Muhammad Tehseen urged the government to review the
electricity tariff policy for domestic, commercial, and industrial
consumers of Karachi.
He mentioned that the decision of the power regulatory authority to
revise the FY 2023–24 Fuel Cost Adjustments (FCA) is unjustified and
retroactive, which will extract Rs 28 billion from Karachi consumers
after the fiscal year has already closed, violating regulatory
finality.
The post-year revisions erode business confidence and contradict
NEPRA’s own principle of predictable tariff adjustment, he remarked.
He pointed out that NEPRA’s current tariff determination has fixed
K-Electric’s average tariff at Rs 32.57 per unit under Multi Year
Tariff (MYT), while other DISCOs enjoy an average rate of Rs 34 per
unit.
This discriminatory pricing forces Karachi to subsidize loss-making
DISCOs, despite being the country’s most efficient and compliant
consumer base, President FBATI said and warned that if such
disparities continue, the power utility could face financial distress,
threatening the stability and reliability of Karachi’s energy supply.
The consumers in Karachi are also burdened with a Power Holding
Limited (PHL) surcharge of Rs 3.23 per unit, despite K-Electric having
no connection to PHL’s circular debt liabilities.
He demanded that PHL surcharge be removed immediately to ensure equity
and fairness across all distribution regions. “Karachi consumers
cannot be held responsible for inefficiencies and financial
mismanagement of other DISCOs,” he remarked.
Tahseen also pointed out that Karachi’s consumers and industries are
still awaiting Rs 33 billion from the COVID incremental consumption
incentive package announced to reward higher electricity usage during
low-demand periods.
Instead of releasing this pending benefit, the Power Division and
NEPRA are clawing back previously passed-on relief, worsening
financial pressure on industries, he said and added. The delay
reflects a clear policy inconsistency; reliefs are promised but never
delivered, while new recoveries are imposed retrospectively.
