NEPRA endangers livelihood, say traders

According to data provided to Nepra, power generation in June 2021 was recorded at 14,361.17 GWh. PHOTO: FILE

KARACHI:

The business community, frustrated by the rising cost of inputs, has appealed to the government to stop the National Electricity Regulatory Authority (Nepra) from taking anti-people and anti-business decisions as businesses are on the verge of collapse, putting their livelihood millions of people at risk.

Now, there is no reason to strike to protest rising energy tariffs because industries will eventually shut down, which will also hurt the country’s exports, he warned.

Karachi Chamber of Commerce and Industry (KCCI) President Iftikhar Ahmed Sheikh decried Nepra’s decision to allow tariff hike of Rs 7.0562 per kilowatt-hour (kWh) as fuel duty adjustment for January 2024.

In a statement, he pointed out that it was grossly unfair to allow a surcharge of Rs 7.0562 per kWh from all categories of consumers on the pretext of variation in fuel charges.

“All the citizens and members of the business community have already paid their bills for January 2024, therefore, Nepra has recommended to collect the variation in fuel charges for January 2024 in a separate head in the March 2024 bills, which it will not only affect the budget of almost all households but also increase the cost tremendously for all types of construction units,” he said.

Sheikh pointed out that the circular debt continued to rise and crossed Rs 5.73 trillion only because hardly any efforts were being made to check theft and losses. “They are trying to prevent the cyclical debt from increasing further by increasing tariffs, which is a no-brainer as the hefty bills will make the situation worse by encouraging many to steal electricity.”

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Speaking to the Express Tribune, Hyderabad Chamber of Small Traders and Small Industries President Muhammad Farooq Shaikhani said, “The complex economic web woven by loans and the government’s tendency to seek fresh loans to settle debt is not a product of independent taking decisions, rather it reflects the current state of affairs in Pakistan.”

Condemning Nepra for a drastic increase in electricity tariffs, he called the authority a manipulative entity that has burdened both traders and the public with billions of rupees in the name of adjusting fuel charges. Shaikhani pointed out that during the winter, electricity consumption had already halved, with just 12,000 megawatts being used by the grid along with 10 to 12 hours of load shedding.

He called for an urgent review of the contracts signed with independent power producers (IPPs) with a view to saving the national economy in the larger interest of the country.

Published in The Express Tribune, February 29^u2024.

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