October 12, 2008	Sunday	Shawwal 12, 1429

KARACHI, Oct 11: Amid outrage and vehement rejection of the notified increase in power tariff, the government has told the Karachi Electric Supply Company not to charge arrears from April to August, Qashif Effendi, a spokesman for the KESC, said on Saturday.

The utility has now been allowed to pass on the burden to consumers with retrospective effect from Sept 1.

The spokesman said the easy instalment facility announced on Friday for payment of arrears from April would no more be applicable after the fresh announcement.

On Oct 4, the ministry of water and power had issued SRO 1042(1)/2008 notifying the National Electric Power Regulatory Authority’s determination as per Schedule-I for January-March and applicable tariff as per Schedule-II, which was to become effective from April 1.

For the April-June period, the effect of tariff increase would have been 28 paisa per unit (5 per cent). From July to August a further increase of 38 paisa (6 per cent) was allowed, making it 64 paisa (38+28 paisa per unit).

Even after government’s orders not to pass on the April-Aug burden to consumers, the least prosperous consumers will be worst hit by the increase in the KESC tariff.

Sources said it would be more than 90 per cent of the enhanced bill.

The increase would result in a 100 per cent hike when 16 per cent general sales tax and withholding tax on consumption of more than 1,000 units were reflected in the bill.

Surprisingly, both the government and the KESC officials are claiming that the utility has already raised its tariff by 31 per cent, bringing its rates “at par with applied tariffs of Wapda power distribution companies throughout the country”, despite a mandatory bar on the management not to raise tariff for seven years after the utility’s privatisation.

On Saturday, the KESC faced a shortage of 225 megawatts, causing several spells of loadshedding, its spokesman said.

At least two spells, each of one-and-half-hours, were experienced in various areas of the city.The utility was still not using the maximum facility from the two independent power producers while at the same time continuing with below par operation of at least two units of Bin Qasim power plant.

MQM PLEA: Meanwhile, the Muttahida Qaumi Movement has urged the president, the prime minister and other authorities concerned to order withdrawal of ‘unjust’ increase in KESC tariff.

Speaking at a press conference on Saturday, deputy convenor of MQM coordination committee Dr Farooq Sattar said a party delegation would meet the prime minister, probably on Monday.

He recalled that at the time of KESC privatisation, it was decided that the new management would not raise tariff for next seven years.

He said that it was also a matter of grave concern that people of Karachi would have to pay additional amount in the head of “fuel adjustment charges” for April to September from next month.

“Since long, the people of Karachi have been subjected to eight to 10 hours of loadshedding on a daily basis but it’s ironic that the KESC is forcing them to pay more,” Dr Sattar said.

He said that 70 per cent increase in power tariff would hit the poor and middle class people, besides badly affecting the economic and industrial activities in the city.

He assured people of Karachi that the MQM would plead their case at every level, adding that its legislators would also take up the issue in the National Assembly.