HYDERABAD: Muhammad Farooq Shaikhani, President, Hyderabad Chamber of Small Traders & Small Industry, expressed concern over the recent 4.56 rupees per unit electricity price hike approved by the National Electric Power Regulatory Authority (NEPRA) upon the request of the Central Power Purchasing Agency (CPPA) for fuel price adjustment.
In a statement issued on Sunday, Shaikhani raised questions about the surge in fuel adjustment despite online statistics indicating that only 14.3% of Pakistan’s electricity is generated from furnace oil. Over the past few months, reliance on diverse sources like coal, wind, solar, atomic and hydro has dominated electricity generation. He urged clarity on the reasons behind the substantial fuel adjustment increase.
Shaikhani highlighted the government’s installation of power plants beyond capacity, contributing to the escalating circular debt. This, coupled with rising prices and electricity shortages, has led to the shutdown of numerous industries. Domestic consumers are turning to solar systems, posing a looming challenge for the government’s future electricity consumption policies.
Shaikhani pointed out the persistent struggle with circular debt, exacerbated by line losses and electricity theft, despite repeated International Monetary Fund (IMF) calls for expense reduction. The burden of over 39 billion rupees resulting from the electricity price hike is anticipated to impact both traders and the general public.
The Hyderabad Chamber of Small Traders and Small Industry, representing the business community, have consistently brought attention to the damaging impact of contracts with Independent Power Producers (IPPs). These agreements not only harm the economy but also jeopardize the country’s foundations; the IPPs are identified as the primary cause of instability in Pakistan’s electricity prices. The public and traders bear the consequences through electricity shortages and increased costs.
Emphasizing the transformative potential of Thar Coal, Shaikhani advocated for better utilization alongside wind, solar, atomic and hydroelectric power projects. However, he stressed the need for a robust comprehensive policy, acknowledging the existing political crisis in Pakistan as a barrier.
Copyright Business Recorder, 2024