Higher power cost: FPCCI body highlights adverse impact on economy

KARACHI: The FPCCI Standing Committee on Energy, under the chairmanship of Malik Khuda Bakhsh, held an emergency meeting highlight the devastating impact of exorbitant electric charges on Pakistan’s economy and condemned these high rates.

It was stated that the entire burden has been placed on the public to favour 40 IPPs. In the country, 25% of IPPs are closed, and these closed IPPs are receiving monthly payments of Rs10 billion, causing the national economy to sink further into crisis.

Additionally, IPPs are charging capacity charges of Rs24 per unit even for unused electricity. In the meeting, the committee vehemently demanded an immediate review of these capacity charges, which are pushing industries to the brink of collapse and endangering the survival of businesses in Pakistan.

The Energy Committee members expressed deep concern over the catastrophic effects of the Independent Power Producers’ (IPPs) exorbitant electric charges, which have resulted in widespread unemployment, closure of industries, reduction in foreign investment, and significant economic losses for the country.

The Energy Committee criticized IPPs for their anti-business practices, forcing consumers to bear the negative impact of capacity charges, while industries are being compelled to pay Rs24 per unit against NEPRA’s Rs8 per unit.

Malik Khuda Bakhsh warned that achieving the revised tax collection target of Rs12.9 trillion and the export target of $100 billion by 2030 is impossible in the current economic situation.

He emphasized that immediate action is necessary to address the economic crisis caused by exorbitant electric charges.

The committee members unanimously passed a joint resolution condemning the high electric charges and urged the government to immediately revisit the agreements with IPPs to reduce electric charges. They also considered terminating the agreements with IPPs that fail to reduce electric charges.

The committee demanded swift action from the government to ensure a sustainable and affordable energy supply for industries and the general public, which is crucial for Pakistan’s economic stability and prosperity.

Copyright Business Recorder, 2024