President Karachi Chamber of Commerce & Industry (KCCI) Muhammad Jawed Bilwani, while strongly condemning the recent decision by the National Electric Power Regulatory Authority (NEPRA), which deprives Karachi’s consumers of significant relief in the monthly electricity adjustment, said that both NEPRA and K-Electric (KE) failed to provide the promised benefits to Karachi’s consumers.
In a statement issued, President Bilwani noted that NEPRA’s recent announcement regarding the fuel price adjustment for November revealed a mere reduction of Rs 1.23 per unit. “Although this reduction should be seen as a step in the right direction, it falls far short of what was expected. Karachi’s consumers were expecting a much more substantial relief, especially given that KE had previously requested a reduction of up to Rs 4.98 per unit for November’s adjustment.
He said, “What is even more concerning, however, is that despite the November tariff adjustment being calculated at a reduction of Rs 5.0029 per unit, only a Rs. 1.23 reduction was made for K-Electric consumers. This adjustment left a substantial benefit of Rs. 5.444 billion unpassed on to the consumers.”
President KCCI expressed strong displeasure with this move, stating that NEPRA and K-Electric have failed to uphold their commitment to providing consumers with significant relief during these difficult times. “Karachi’s consumers, already burdened by the high cost of living and doing business, are now being further victimized by this blatant injustice”, stated Jawed Bilwani, “NEPRA, which is responsible for protecting the rights of electricity consumers, has fallen short of its mandate by not ensuring that the full benefits are passed on to the consumers. KE, on the other hand, seems to have no regard for the hardships of the people of Karachi and continues to benefit from these unjustified delays in tariff reductions.”
While expressing concern over the lack of transparency in the regulatory process, he said that it was highly disturbing that NEPRA, after a thorough analysis, failed to enforce the full reduction for the consumers of Karachi. “K-Electric’s failure to implement the full benefit of Rs. 5.444 billion, which could have alleviated the financial burden on the people of Karachi, is nothing short of an economic betrayal”, Bilwani remarked.
Moreover, Bilwani referred to the dissenting opinion expressed by NEPRA’s Member Tariff, Mathar Niaz Rana, seconded by Member Technical Rafiq Sheikh, who had opposed the limited relief provided to K-Electric consumers. In his dissent, Rana argued that Karachi’s consumers should have been granted the full benefit of the November adjustment, amounting to a Rs 5.0029 reduction per unit, resulting in a direct benefit of over Rs. 7.215 billion. “The KCCI fully supports Mathar Niaz Rana’s dissenting view. His position represents the voice of Karachi’s business community and consumers, who are being unfairly burdened by this unjust decision”, he said, adding that Rs8.7 billion was still under consideration by the authority and yet to be finalized where NEPRA has put the amount on hold which was strange.
He urged both NEPRA and K-Electric to take immediate corrective actions and ensure that the full benefit of the tariff adjustment is passed on to consumers without further delays. He also called for greater accountability from both organizations to safeguard consumers’ rights, particularly in such challenging economic conditions.
“We demand that NEPRA and K-Electric not only correct this oversight but also ensure that any future adjustments are transparent, fair, and directly benefit the people of Karachi. The business community and the citizens of Karachi deserve better, and we will continue to fight for their rights”, he concluded.
