The Lahore Chamber of Commerce and Industry (LCCI) on Friday appealed to the Prime Minister to disband National Electric Power Regulatory Authority (Nepra) for its failure to protect interests of consumers under clause 31 of Nepra Act.
The LCCI President, Irfan Qaiser Sheikh, expressed strong exception to Nepra move to increase electricity tariff by massive 83 per cent (Rs 6.50 per unit) for the billing of month of April, the single largest raise in the country's history, under monthly fuel adjustment mechanism.
He said that the unprecedented increase would break Nepra's own record of Rs 3.03 per unit increase allowed a few days ago to be recovered in the billing of month of March. He said that the combined effect of the two increases will be about 123 per cent that will translate into an additional burden of Rs 9.53 per unit on all consumers.
He said that the price of electricity for consumers using 301-700 units per month is Rs 10.65 per unit and for those utilising more than 700 units per month it is Rs 13.29. It means, he said, these two increases would double the prices of electricity. The LCCI President opined that the Nepra move is increased the electricity steal that already is 25 per cent of the 22 per cent line losses and up to Rs 50-75 billion losses. He observed that Nepra officials pose that they regularly conduct public hearing but in fact Nepra holds public hearings at five star hotels and advertise it in English newspaper only. He suggested that Nepra should advertise public hearing on national electronic media and hold these meetings at public place to get the real feedback from masses.
He said that how the industry would remain competitive at such a high price of electricity which is one of the basic industrial raw materials. We already have the highest tariff in our region as in India, the electricity tariff for industry is 10.5 cents, in Bangladesh 10.75 cents and in Sri Lanka it is again 10.75 cent whereas in Pakistan tariff is already 15 cents meaning that 45 percent higher as compared to the region.
With this proposed massive and unprecedented increase, we will have double the tariff of electricity what the regional countries are offering to their trade and industries leaving Pakistan totally uncompetitive and unviable in the international market place. "The country had already lost a number of international markets to China, Bangladesh and India due to high cost of doing business and the decision to increase power tariff would make the Pakistani goods more uncompetitive."
He said that the business community was unable to understand that instead of taking measures to control line losses and enhance cheap power generation up to capacity, the policies are being evolved to add to the miseries of the business doing people. Irfan Qaiser said that negative growth witnessed by the Large Scale Manufacturing sector was indeed an eye opener and a wakeup call to the government. He said that the industry needs cheaper electricity to keep the units operational and to complete the export orders well within the given timeframe but only because of the shortage of electricity the exports are not up to the mark.