The Korangi Association of Trade and Industry (KATI) today forcefully condemned a decision by national regulators to impose nearly Rs28 billion in additional fuel charges on K-Electric consumers, branding the move an “unjust burden” that comes while a previously approved Rs33 billion relief package for the city”s industries remains unpaid.
In a statement, KATI President Muhammad Ikram Rajput assailed the National Electric Power Regulatory Authority (NEPRA) and the Power Division for approving the recovery of Fuel Cost Adjustment (FCA) and Fuel Cost Component (FCC) charges for the 2023-24 fiscal year.
Rajput highlighted that instead of receiving long-awaited financial support promised during the Covid-19 period, Karachi”s industrial sector is now facing new financial pressures. “Instead of providing relief, the already-approved support is being rolled back and new financial burden is being imposed,” he stated, warning that such actions are “equivalent to destroying Karachi’s industrial base.”
The KATI president also pointed to the uncertainty created by regulators revisiting past decisions while K-Electric’s multi-year tariff (MYT) is already under review. He criticised NEPRA for altering previous rulings and imposing fresh liabilities, a practice he described as contradictory to the fundamental purpose of a multi-year tariff system.
Furthermore, Rajput argued that industries in Karachi are being compelled to subsidise loss-making power utilities in other parts of the country. He noted that despite K-Electric”s current tariff of Rs32.57 per unit being significantly lower than that of other distribution companies, the city”s consumers are being penalised. “This is unjust and cannot be accepted,” he stressed.
He cautioned that if the current situation persists, it could precipitate a financial crisis or even bankruptcy for K-Electric, which would have severe repercussions for Karachi”s industries, employment levels, and overall economic activity.
KATI has urged the government and NEPRA to immediately rescind the FCA recovery decision and to release the pending Rs33 billion incremental consumption relief package. Rajput asserted that Karachi’s business community is prepared to defend its rights on every available platform and will not compromise on the city”s industrial and commercial interests.