The increase in deposit

Rejecting the proposed increase in security interest rates by DISCOS, business leaders asked the National Electricity Regulatory Authority to address their concerns and oppose raising interest rates.

They said they would stop industrialization and weaken the competitiveness of local industries, because the proposed increase, such as the increase in B2 (invoice) deposits from RS2,010 per kilowatt hour to RS54,783/kW, was unbearable.

The president of the Karachi Chamber of Commerce and Industry (KCCI), Muhammad Jawed Bilwani, urged Nepra to put the proposed increase in deposit rates until the required information was shared with all relevant bodies and a significant and significant process It must also begin, make sure any decision is considering the financial restrictions of consumers and businesses.

In a letter sent to Nepra’s secretary, Bilwani said that members of the business community, commercial agencies and consumers expressed serious concerns about recent reports submitted by various former WAPDA records, seeking an unprecedented increase in interest rates. These proposals, if approved, would give an excessive financial burden on consumers, businesses and industries across the country, he said.

Discos has asked Nepra’s approval to review security rates in accordance with electricity consumption, ownership size and even market value. Such a drastic increase, without a transparent and good communication logic, will create financial difficulties for consumers and businesses already struggling with the escalation of electricity invoices and financial pressure. “The proposed rise, such as the increase in B2 security deposits from RS2,010/kW to RS54,783/KW, is excessive and economically unsustainable,” Bilwani said.

He warned that such an unbearable hiking would not leave any other choice for consumers, but to go to the confidence of electricity through solar technology, which would sink discs into a deep crisis, as their consumers will decrease rapidly.

He said the discs, including K-Electric, had collected security deposits that were about four times the maximum demand and seven times average demand by consumers. Bilwani edited that K-Electric had collected security deposits from all its consumers to impose sanctions on huge 13,000 megawatts. However, even during peak times, the demand for electricity reaches only 3,500 Megawatt, while under normal conditions it is on average between 2,200 and 2,400MW.

“This clearly shows how much the utility service has exploited the public by imposing unfair security deposits. Similar is the situation to the rest of the country, as all discs, including keees at only 23,000mw.”

In another letter to Nepra’s secretary, Bilwani said Nepra should direct all records to conduct extensive checks on security deposits and consumer contributions.