NEPRA Urged to Set Fixed Charges On Max Demand

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has demanded National Electric Power Regulatory Authority (NEPRA) reinstate past mechanism for fixed charges based on actual maximum demand and the units consumed, a press release revealed on Thursday. “The current practice of fixed charges based on 50 percent of sanctioned load defies all logic and fair practice,” said FPCCI president Irfan Iqbal Sheikh.

The past mechanism for fixed charges based on actual maximum demand and the units consumed should immediately be reinstated for electricity billing, he demanded. “The business environment of Pakistan is in stagnation due to the burgeoning cost of doing business; and, the NEPRA is not listening to the legitimate concerns of the business community,” Sheikh said.

He added that a large number of industries were dysfunctional or operating at their partial capacities due to floods and rains, and they were forced to work under an environment of insufficient power supply against the demand in the system.

“The fixed charges based on 50 percent of the sanctioned load instead of actual maximum demand are totally out-of-sync with the actual consumption and ground realities of industries.”

He showed dismay over the role of NEPRA, saying the authority had cancelled a public hearing recently, further adding fuel to frustration of the consumers suffering at the hands of discos and K.Electric (KE). FPCCI chief explained that thousands of SMEs are closed due to the economic conditions and floods in the country. “There is no way that these companies can pay their unfairly generated bills based on sanctioned load, increased monthly fuel price adjustment, quarterly tariff adjustment and hike in base tariffs.”

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