LCCI flays hike in electricity, gas tariffs

Accuses govt of writing off dues of defaulters, urges reduction in system losses

LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) flayed the massive increase in electricity and gas tariffs by National Electric Power Regulatory Authority (Nepra) and Oil & Gas Regulatory Authority (Ogra), and termed it another nail in the coffin for the export-oriented industry.

In a statement issued on Thursday, LCCI President Abdul Basit, Senior Vice President Amjad Ali Jawa and Vice President Muhammad Nasir Hameed Khan said that Nepra has allowed power distribution companies (Discos) to charge compensation for heavy system losses from consumers amounting to over Rs162 billion in a year, which is sheer injustice with the industry.



“It is a matter of surprise that instead of recovering dues, Nepra is facilitating and encouraging the defaulters by writing-off dues and laying the entire burden for recovering losses on the shoulders of consumers,” they said.

The LCCI office-bearers said that repeated irrational increases in power and gas tariffs will not solve power sector problems without the government addressing inefficiencies in the system. They said that Nepra is continuously adding up a staggering amount as circular debt due to inefficiency in collection of electricity dues and its failure to stop power theft.

“These inefficiencies are actually an unjust tax on honest power consumers. The industrial sector as a whole pays its dues in-time and there is no line losses/theft in most of the industrial estates, especially those in Lahore,” LCCI members said in the statement.

They said that power sector planners should take cue from the efficient distribution companies (Discos) where line losses are the lowest. They said that the business community is shocked that instead of taking measures to control line losses and enhance cheap power generation up to capacity, policies are being evolved to add to the misery of traders.



They said negative growth witnessed by the export sector is indeed an eye opener and a wake-up call for the policymakers. They said that Pakistan has already lost a number of international markets and the proposed increase in power tariff would make local goods uncompetitive.

Published in The Express Tribune, September 22^nd, 2017.

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