KCCI slams Nepra over ‘inadequate tariff relief’ for Karachi consumers

KARACHI: President of the Karachi Chamber of Commerce & Industry (KCCI) Muhammad Jawed Bilwani has criticised the National Electric Power Regulatory Authority (Nepra) for depriving Karachi’s consumers of significant relief in the monthly electricity adjustment. He said that both Nepra and K-Electric (KE) have failed to deliver the promised benefits to the city’s consumers.

In a statement, Bilwani noted that the power regulatory authority’s recent announcement regarding the fuel price adjustment for November resulted in only a Rs1.23 per unit reduction. “Although this reduction is a step in the right direction, it falls far short of expectations. Karachi’s consumers were anticipating a much more substantial relief, particularly as KE had earlier requested a reduction of up to Rs4.98 per unit for November’s adjustment,” he said.

He further pointed out, “What is even more concerning is that, despite the tariff adjustment for November being calculated at a reduction of Rs 5.0029 per unit, only Rs 1.23 per unit was passed on to K-Electric consumers. This decision withheld a substantial benefit of Rs5.4 billion from consumers.”

Expressing strong discontent, Bilwani accused Nepra and KE of failing to honour their commitment to providing much-needed relief. “Karachi’s consumers, already struggling with the high cost of living and doing business, are now being further burdened by this blatant injustice,” he stated. “Nepra, which is responsible for protecting electricity consumers’ rights, has failed in its duty by not ensuring that the full benefit is passed on. Meanwhile, KE appears indifferent to the hardships of Karachi’s residents and continues to benefit from these unjustified delays in tariff reductions.”

Raising concerns over transparency in the regulatory process, Bilwani said it was alarming that Nepra, despite conducting a thorough analysis, did not enforce the full reduction for Karachi’s consumers. “KE’s failure to implement the full benefit of Rs 5.444 billion, which could have eased the financial strain on the people of Karachi, is nothing short of an economic betrayal,” he remarked.

He also referred to the dissenting opinion expressed by Nepra’s member tariff, Mathar Niaz Rana, and seconded by Member Technical Rafiq Sheikh, both of whom opposed the limited relief provided to KE consumers. Rana had argued that Karachi’s consumers should have received the full Rs5.0029 per unit reduction, which would have resulted in a direct benefit of over Rs7.215 billion.

“The KCCI fully supports [Rana’s] dissenting view. His stance echoes the concerns of Karachi’s business community and consumers, who are being unfairly burdened by this unjust decision,” Bilwani said, adding that Rs8.7 billion remains under consideration by the authority and has yet to be finalised. “Nepra’s decision to put this amount on hold is highly questionable,” he noted.

He urged both Nepra and KE to take immediate corrective action and ensure that the full benefit of the tariff adjustment is passed on to consumers without further delay. He also called for greater accountability from both organisations to safeguard consumer rights, particularly in these challenging economic conditions.

“We demand that Nepra and KE not only rectify this oversight but also ensure that future adjustments are transparent, fair, and directly benefit the people of Karachi. The business community and the citizens of Karachi deserve better, and we will continue to fight for their rights,” he concluded.