Negative FCA for KE consumers: KATI concerned over delay in implementation

KARACHI: Junaid Naqi, President of the Korangi Association of Trade and Industry (KATI) has voiced strong concerns over reported efforts by the Ministry of Energy (Power Division) to delay the implementation of the negative Fuel Cost Adjustment (FCA) for April 2025 for K-Electric consumers.

He warned that these attempts, which lack legal and procedural basis, could sabotage the Prime Minister’s reform initiatives.

“The FCA must be determined and implemented in accordance with NEPRA’s formula-based regulatory framework,” said Naqi. “Blocking its application solely for Karachi raises serious questions about regulatory independence and sets a troubling precedent of administrative overreach.”

Naqi pointed out that in the past, when FCA charges were higher, the people and industries of Karachi paid the additional costs without delay. “Now, when the relief is finally due, obstacles are being placed. This selective treatment is unjust and erodes public trust in the government’s reforms,” he added.

He further clarified that unless a uniform FCA policy is formally approved by the federal cabinet and directed to NEPRA, no intervention holds legal validity. Even if approved, such a policy can only be applied prospectively, not retroactively.

President KATI called for the transparent, fair, and timely implementation of all regulatory decisions and urged the government to allow NEPRA to function independently. Junaid Naqi stressed the need for equal treatment of all consumers including those in Karachi and reaffirmed the importance of upholding the rule of law.

He welcomed Prime Minister Shehbaz Sharif’s recent move to reduce electricity tariffs for industrial consumers, calling it a timely and commendable step.

Junaid Naqi said the decision reflects the government’s commitment to supporting Pakistan’s export sectors and driving industrial growth during a time of economic uncertainty.

Copyright Business Recorder, 2025