LCCI takes strong exception to power tariff raise

Lahore Chamber of Commerce & Industry (LCCI) Friday took strong exception to the government for its decision regarding over 30 percent (Rs 3.04 per unit) increase in the power tariff and urged the government to withdraw this devastating and irrational step as it would prove last nail in the industry's coffin.
LCCI President, Irfan Qaiser Sheikh stated that it is quite alarming that an increase of 22 percent was made in the electricity tariff only last month, but that failed to decrease the ever-increasing gap between the cost of power generation and the revenue collected. He further said that over 50 percent increase in last three months government has virtually pushed the entire trade and industry to the wall. The cost of doing business would now go to the level where nobody would be putting any money into any new venture while the existing ones would be bound to shift their operations to other countries.
He said that the Pepco is adding up a staggering amount of Rs 30 billion per month as circular debt due to inefficiency in collection of power dues, its failure to stop power theft and 'kunda' culture. He said that these inefficiencies are actually an unjust tax on the honest power consumers. The industrial sector as a whole pays its dues in time and there are no line losses/theft most of the industrial estates and industrial estates in Lahore are one example, he said.
LCCI president further said that all power distribution companies should be directed to determine their respective electricity tariff on the basis of line losses. For instance, if the line losses in one Disco are bigger than the other, then the power tariff in that particular Disco should also be more than the other. He said that business community is surprised that instead of taking measures to control line losses and enhance cheap power generation up to the capacity, policies are being evolved to add to the miseries of the business-doing people.
He observed that the industrial sector was passing through a critical time of its history. A large number of industrial units had already closed down their operations due to acute energy shortage. He said that situation needs corrective measures but the policy makers are doing the other way round. He said that negative growth witnessed by the large-scale manufacturing sector was indeed an eye opener and a wakeup call to the government.
LCCI President said that the industry needs continuous supply of electricity to keep the units operational and complete export orders well within the given timeframe. He added that Pakistan has already lost a number of international markets and the decision to increase power tariff would make the goods more uncompetitive.