Formal debate will be initiated on load factor issue, Nepra member tells KATI office-bearers

KARACHI: Member Technical (Sindh) of the National Electric Power Regulatory Authority (Nepra), Rafiq Ahmed Sheikh, has said that a formal debate will be initiated on the issue of load factor following a proposal by the Korangi Association of Trade and Industry (KATI).

He said efforts are under way to resolve power tariff issues and challenges being faced by the industrial sector.

He was addressing an interactive session during his visit to KATI, attended by industrialists in person and via Zoom.

Rafiq said a few years ago, it was noticed that industrial associations and stakeholders would be consulted in policy and decision-making for the power sector.

In this regard, meetings were held with industrialists in Faisalabad, Sialkot, KATI and the Karachi Chamber, which proved highly beneficial in understanding industry issues more comprehensively. He stated that Nepra’s core objective is to protect the interests of both consumers and the private sector.

He added that global best practices also support stakeholder representation in the consultative process to ensure greater transparency.

He appreciated the patriotic spirit and commitment shown by industrialists during these engagements and said that while stakeholders are performing their duties with sincerity, certain systemic flaws continue to create challenges that need to be urgently addressed.

Earlier, KATI President Muhammad Ikram Rajput thanked Rafiq Ahmed Sheikh for his transparent and principled role throughout his Tenure as a NEPRA member. He stressed that incremental power packages should be designed strictly in line with industrial requirements.

He said Karachi’s industry is already under immense pressure due to expensive electricity, high gas tariffs, fuel surcharges, repetitive taxes and unstable policies.

The KATI president termed the decision by Nepra and the Power Division to recover Fuel Cost Adjustment (FCA) and Fuel Cost Component (FCC) from K-Electric consumers for FY 2023–24 as deeply alarming for industry. He said that despite the Multi-Year Tariff (MYT) being in place for K-Electric, past decisions were being altered and new financial burdens were being imposed, creating severe uncertainty in the business community.

Ikram Rajput further said it was an undeniable reality that Karachi’s industry was being used to subsidize loss-making power distribution companies in other parts of the country, which was completely unacceptable.

He demanded the immediate withdrawal of the recent fuel surcharge recovery and urged the authorities to ensure the payment of the promised Rs. 33 billion incremental consumption package from the Covid period.

Deputy Patron-in-Chief Zubair Chhaya emphasized that Nepra, as a regulator, plays a critical role at a time when industrialization in Pakistan is declining due to some of the highest power tariffs in the region.

Copyright Business Recorder, 2025