Daily Times

The Businessmen Panel (BMP) condemned the National Electric Power Regulatory Authority’s (NEPRA) decision to increase electricity tariffs by Rs4.3 per unit in January-2022 bills on Monday, stating that the burden of power theft, mismanagement, and inefficiencies cannot be shifted to consumers on the pretext of fuel adjustment.

Mian Anjum Nisar, Chairman of the Businessmen Panel, said in a statement issued on Saturday that Pakistan’s industry had been harmed by the high cost of doing business, which discouraged investment in capacity and capability and called for easing the burden of heavy taxes on the power sector.

He urged the government to shut down all costly oil-fired power plants in order to ensure consumers had access to cheaper energy. He lamented that the previous administration did not prioritise the rehabilitation and maintenance of older power plants, resulting in multiple system constraints and significant losses.

He argued that underutilization of efficient power plants due to RLNG scarcity could be avoided if the Ministry of Energy assesses and manages RLNG availability in a timely manner. He urged the Ministry to take a proactive role in ensuring the timely supply of RLNG, so as not to disrupt the operation of the efficient power plants. Thus, he added, the power sector’s inefficiencies could be mitigated without passing them on to end consumers.

The enormous cost burden was being imposed on consumers because the government was unable to secure RLNG to power the plants. Due to a lack of imported gas, inefficient plants were operated, generating expensive electricity in November 2021, which was not just, he added. He argued that because RLNG was an imported fuel, it could be managed more effectively through improved supply chain management, and thus the impact of such mismanagement on the non-availability of RLNG cannot be passed on to consumers.

Anjum Nisar stated that the constant increase in power tariffs on the pretext of fuel adjustment had increased electricity prices and added to the already high cost of trade and industry. Seeking comparable energy tariffs for domestic industries in order to capture the global market, he stated that due to high electricity rates, power theft became rampant as the tariff was unaffordable to consumers.

While describing the government’s decision to increase electricity tariffs by Rs4.30 per unit as a shameful decision, he urged the government to reverse the increase.

The government’s decision to increase the electricity tariff by 4.30 rupees per unit is anti-industry, and the BMP strongly condemns the government’s decision and calls on it to rescind it.

He urged the power ministry to identify system constraints and communicate targets to all concerned departments in order to launch a wartime effort to upgrade the transmission system.

He urged the completion of all ongoing power projects well ahead of schedule. He stated that while hydel power production had increased, the price of furnace oil had been steadily declining on international markets. He stated that business-friendly policies must be adopted, similar to those adopted by other neighbouring countries in the region.

He suggested that the amount specified in trade policy be used to promote exports by providing incentives to trade and industry and by exploring new markets. According to the BMP Chairman, Pakistan’s electricity prices were already on the high side, which was the primary reason for the country’s price hikes. He stated that providing affordable electricity would assist in lowering production costs, thereby benefiting the public. He stated that rising imports and a widening trade deficit posed a serious threat to economic growth and must be addressed urgently.

He endorsed the National Electric Power Regulatory Authority’s recommendations, directing the government to include hydropower projects in the definition of renewable energy, stating that the country could not afford to rely on expensive and environmentally damaging fossil fuels. Staff Report