ISLAMABAD: Delegates of leading banks proposed that K-Electric should be offered tariff for a longer period, which would give the organisation a chance to raise financing for long term substitution and development designs. At a public hearing held by the power sector regulator, representatives of various economic sectors expressed concern over the revised multi-year tariff set at Rs12.77 per kilowatt-hour by National Electric Power Regulatory Authority (NEPRA) in October 2017, which was 18% lower than that sought by K-Electric. During the proceedings, it was revealed that the Ministry of Energy had also written a letter to NEPRA, asking it to reconsider the tariff in order to ensure smooth operations of the power company. Power Division Joint Secretary Zargham Eshaq said that the government desired that K-Electric should be able to supply electricity to Karachi consumers. The government would offer relief in an attempt to ensure electricity supply to the consumers, he added. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Vice President Mirza Ishtiaq Baig said that Karachi was the centre for some of the largest industries in the country and contributed significantly to the country’s gross domestic product (GDP). He said that if the city did not get required investment for infrastructure upgrade due to unviable tariff, it may not only adversely affect the people of Karachi in terms of extended load shedding, but will also impede the industrial sector’s growth and operations. On the other hand, K-Electric officials reiterated that structural changes and lower base tariff significantly undermined the power utility’s ability to make the investment needed for reliable and uninterrupted power supply. They said that the revised multi-year tariff was insufficient to cover the cost of issues, which was feared to lead to serious cash flow shortfall, putting sustainability of the company at risk and result in serious implications for K-Electric and its consumers. Published in Daily Times, December 7th 2017.