Consumers criticize k-electric at NEPRA hearing

Business Dec, 11 2024
Consumers criticize k-electric at NEPRA hearing
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ISLAMABAD: Consumers raised several grievances during a NEPRA hearing regarding K-Electric’s right-of-claims, highlighting the growing difficulties faced by Karachi’s residents and businesses.

During the hearing, consumers expressed their frustration with the rising electricity costs in Karachi, with many businesses struggling to stay afloat. “Hundreds of factories have already shut down, and many more are at risk of closure due to unaffordable power rates,” one consumer said. It was also pointed out that Karachi’s electricity consumers are burdened with surcharges aimed at reducing the circular debt. “We strongly reject any additional charges in the form of right-of-claims or other surcharges,” another consumer remarked. A further concern was raised about the potential law-and-order issues that could arise if surcharges are imposed.

Consumers also questioned the effectiveness of K-Electric’s privatization, asking, “What was the purpose of privatization, and has it been achieved? K-Electric continues to produce expensive electricity while benefiting from tariff differential subsidies.” Despite receiving several margins from NEPRA, the issue of escalating right-of-claims remains unresolved, leading to increased frustration among consumers who continue to bear the financial burden.  The hearing underscored the growing discontent in Karachi regarding the cost of electricity and the detrimental impact on the city’s economy. In related news, NEPRA recently approved a Winter Package offering relief to electricity consumers. The package includes a 30% discount for domestic consumers (Rs. 11.42 per unit) and an 18% discount for industrial consumers (Rs. 5.72 per unit) on additional electricity usage from December to February. The package aims to encourage energy conservation while providing financial relief to consumers during the winter months.

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