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KARACHI: Many areas remain without power
The proposed increase in power tariff proposed by the National Electric Power Regulatory Authority (Nepra) has strongly been criticised by the businessman community and industrialists, who termed the recommendation “patronisation of the KESC’s inefficiency. “Allowing the KESC to increase tantamount to rewarding KESC for its inefficiency and that, too, at the cost of the interests of domestic consumers in general and industries in particular,” said Saboor Ahmed, Chairman of the Karachi Chamber of Commerce & Industry’s Subcommittee on Power and Gas. Nepra has reportedly allowed the power utility to increase the tariff for its consumers by 29 paisa per kilowatt hour. Mr Ahmed said here on Monday that “electricity accounted for a major portion of production cost of our industry which, under the present WTO regime where the maxim of fittest of survival prevails, is already facing difficulty in competing with the foreign products, both in global as well as domestic markets. Any increase in power tariff will further erode its competitive edge. Therefore, the need for all such policy measures which will enable our industry to meet this challenge, has become all the more compelling, and the reduction in the cost of energy is one such critically important issue.” He lamented that instead of ensuring availability of electricity at affordable rates and taking long-term corrective measures well in time to meet the gap of 466 megawatts between the demand and supply, the KESC always opted for increasing power tariff. He observed that transmission and distribution (T&D) losses had increased to 34.1 per cent in 2006-07 from 33.5 per cent in 2005-06 but no serious efforts to contain the situation were being made.
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