Daily Times

The Central Power Purchasing Agency (CPPA) has sought a Rs 2.92 per unit reduction in power rates for a month. The CPPA has submitted a tariff petition on behalf of all the distribution companies except K-Electric (KE) to the National Electric Power Regulatory Authority (NEPRA) to reduce the power rates. The CPPA contended in the petition that the fuel cost worked out and approved by NEPRA for the month of November 2014 was Rs 7.41 per unit but with the reduction in international oil prices, the cost has come down to Rs 4.49 per unit — the lowest in more than five years. Therefore, said the CPPA officials, the consumers deserved more power reduction than what had been announced by the Prime Minister (PM), i.e. Rs 2.32 per unit. The price reduction will give a long awaited relief to the consumers inflicted by high inflation and low purchasing power. But when power consumers in other parts of the country are benefiting from the reduction in international oil prices, KE consumers are left out. The benefit so far given to KE consumers is minuscule compared to what is offered to the other consumers countrywide. In October, NEPRA slashed the power tariff by Rs 0.74 for KE under the fuel price adjustment mechanism. This reduction too came in response to a petition filed by KE with the regulator.

The people of Karachi, including political parties, business community and other stakeholders have not been happy over the reduction though, and have blamed KE for not giving them more substantial relief. KE officials on the other hand blame NEPRA for failing to decide on the price reduction. In that case, the PM should look into the matter seriously and give relief to the Karachi power consumers in line with other power consumers in Pakistan. Recently, KE was served a show-cause notice by NEPRA for overcharging consumers involved in power theft rather than cutting off electric supply to them. The absence of any effective monitoring body to check the billing done by KE and the discriminatory policies of NEPRA towards Karachi can lead to political discord in future. The people of Karachi are already hard done by due to the disrupted law and order situation. Treatting them as a different entity would further alienate them. *