Take a hike: Industrialists condemn rise in power tariff

Nepra cleared the way for K-Electric to raise charges by Rs0.81 per unit on Thursday

KARACHI: Yet another bombshell was dropped on the city's struggling industries as the National Electric Power Regulatory Authority (Nepra) allowed K-Electric to raise the power tariff by Rs0.81 per unit. Denouncing the step on Friday, businessmen said that the government's approach was 'anti-industry' and 'anti-investment'.

Karachi Chamber of Commerce and Industry president Iftikhar Ahmed Vohra said that it would have a debilitating effect on the national economy. "The hike in electricity charges has come as a surprise since the fuel prices have been lowered," he remarked, pointing out that in the last few years, the power tariff had more than doubled as the price of fuel rose. "With the recent spell of eased input costs, the industries and businesses were expecting a major cut in the power tariff."

Vohra said that frequent increases in utility tariffs had already generated chaos for trade and industry. "Now it seems that the government is wilfully creating hurdles for the country's economic survival."

He pointed out that Nepra had reduced the electricity tariff by Rs2.8 per unit to adjust for changes in fuel prices on January 18 but instead of benefiting from this, K-Electric consumers had been burdened with higher charges. "The industries are already struggling to remain competitive in the global markets but electricity is a major input cost."

Karachi Tajir Ittehad president Jamil Paracha said that the small industries were barely surviving due to prolonged load-shedding and excesses levies and surcharges but the government had now allowed K-Electric to sound the death knell for them. He added that the private utility company should improve its work and stop load-shedding if it was going to demand tariffs higher than those in other parts of the country.

A K-Electric spokesperson, however, told The Express Tribune that the decision had been made by Nepra. "K-Electric has nothing to do with the increase in the tariff; this is Nepra's responsibility."

Nepra cleared the way for K-Electric to raise its power tariff during a public hearing headed by vice chairperson Habibullah Khilji on Thursday. Electricity consumers using up to 50 units per month will be exempted from the tariff revision.

During the hearing, K-Electric finance director Muhammad Amir claimed that the cost of power production had risen by Rs814.194 million on the back of fuel variation in January.