KARACHI: Business leaders have strongly opposed the proposed hike in security deposit rates by electricity distribution companies (DISCOs), urging the National Electric Power Regulatory Authority (NEPRA) to reject the move, which they argue would severely impact industrial growth and economic competitiveness.
Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Jawed Bilwani warned that the proposed increase—such as the rise in B2 security deposits from Rs2,010 per kilowatt to Rs54,783/KW—is excessive and financially unsustainable for businesses.
In a letter to NEPRA, Bilwani demanded that the proposal be put on hold until full transparency is ensured and a meaningful consultation process is conducted with all stakeholders. He stressed that such drastic increases, based on electricity consumption, property size, and market value, would add undue financial strain on industries already struggling with high electricity tariffs and economic pressures.
Bilwani cautioned that if the hike is approved, many consumers would have no choice but to switch to self-generation via solar energy, leading to a decline in DISCOs’ consumer base and financial stability.
He also pointed out that DISCOs, including K-Electric, have already collected security deposits far exceeding actual demand. He highlighted that while K-Electric has sanctioned a total load of 13,000MW, peak demand only reaches 3,500MW, with normal consumption between 2,200-2,400MW. Similarly, across Pakistan, DISCOs have sanctioned 97,800MW, whereas national peak demand only reaches 23,000MW.
In another letter, Bilwani urged NEPRA to conduct an extensive audit of security deposits and consumer contributions, ensuring transparency and fairness in the power sector.
Story by
GOHAR ALI KHAN
