ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the Korangi Association of Trade and Industry (KATI) have strongly opposed the proposed increase in security deposits by Distribution Companies (Discos) and K-Electric, demanding full financial transparency before any decision is made.
In separate letters to the Registrar of the National Electric Power Regulatory Authority (NEPRA), both trade bodies have requested access to audited details of total security deposits held by Discos and K-Electric ahead of the public hearing scheduled for February 11, 2025. They argue that consumer representatives must have this critical data to participate meaningfully in discussions on tariff structures, financial management, and consumer rights.
According to the letters, Discos and K-Electric have reportedly collected security deposits amounting to nearly four times the maximum demand and seven times the average demand of consumers. However, a lack of transparency persists regarding how these funds are utilized.
To address this, FPCCI and KATI have urged NEPRA to provide audited details, including:
Total security deposits collected as per the latest audited financial statements.
Breakdown of fund utilization or investments made using these deposits.
Interest earnings on security deposits and whether benefits are passed on to consumers.
Additionally, they have called for audited financial reports on grid-sharing charges, including a clear breakdown of revenue collection, determination, and utilization of these charges. They also seek a detailed report on the asset base of each Disco, covering valuation, depreciation schedules, and network expansion investments, aligning with tariff petitions.
NEPRA has further been urged to provide a transparent breakdown of dedicated distribution systems funded by individual consumers versus those built as part of the common network, addressing discrepancies in asset ownership and cost recovery.
FPCCI President Atif Ikram Sheikh has called on NEPRA to postpone the hearing until complete financial transparency is ensured. He warned that proceeding without making this crucial data available would compromise the credibility of the regulatory process, as Discos and K-Electric already possess the information while consumer representatives do not.
The business community has also demanded that NEPRA publish this data on its website to uphold transparency and regulatory integrity. Several other trade associations have also voiced their concerns regarding the proposed increase in security deposits.
