KARACHI: Complaints from frustrated consumers and issues raised by stakeholders overshadowed a public hearing called by the National Electric Power Regulatory Authority (Nepra) on Tuesday to determine K-Electric Limited’s multi-year tariff for the coming 10 years.

The hearing was held after a petition filed by KE. The company’s Finance Director Aamir Ghaziani made a case for the request for extension of the existing tariff with some adjustments but he was quietened by the protesting stakeholders and consumers who wanted their side to be heard first. After some reluctance Nepra Chairman Tariq Sadozai allowed them to air their grievances.

Syed Adil Gilani of Transparency International said that KE ran its power plants on gas and charged tariff based on furnace oil. Meanwhile, they didn’t even pay Sui Southern Gas Company as much as they should.

He also said that they overcharge the Karachi Water and Sewerage Board. “It’s sad. But who will check their fast meters, their exaggerated bills, etc?”

“Sadly, even when Nepra takes any step in favour of the consumers, KE goes to court to get a stay order,” he pointed out.

At this, Chaudhry Mazhar Ali, general secretary of KE Shareholders’ Association, reminded that the clawback provision money of Rs17 billion was now being collected in the court as a result of one such stay order. “It should be distributed among the consumers as per the original sale agreement of KESC,” he said.

He also complained that the tariff being requested by KE was too high and unjustified as the tariff for the period between 2002 and 2015 already had additions and amendments. “Over these years, KE’s subsidy was increased but they didn’t reduce their tariff,” he added.

Hafiz Naeemul Haq of Jamaat-i-Islami questioned KE’s need for government subsidy. “Why do they take 650-megawatt from the National Transmission and Despatch Company Ltd? They should be generating their own power,” he said while also asking why the benefits of fuel adjustment weren’t extended to consumers.

Retired Major Qamar Rizvi of the Muttahida Qaumi Movement (MQM) regretted that often Nepra declines to react to complaints as it claims to be just a regulating authority.

At this, Moin Alam Pirzada of the MQM said that consumers had no place to complain about exaggerated power bills, etc. “There should be a neutral authority to file complaints of exaggerated bills, fast meters and meter rent other than Nepra,” he suggested.

Anil Mumtaz, a former KE employee and plaintiff in many cases, Tanvir Bari of Karachi Chamber of Commerce and Industry and social activist Nazim Haji also spoke on the occasion.

KE on its part explained that the proposed plans will enable the utility to further enhance its generation, transmission and distribution footprint.

KE’s finance director said, “Pakistan has very little precedent for large-scale private sector investment in the transmission sector, especially in greenfield projects.

“The vertically integrated nature of the tariff, along with long-term regulatory certainty, is necessary for such landmark and unprecedented investments in the sector and the country. The investment, besides further strengthening and developing KE’s infrastructure, will subsequently add more value for our customers. When the company performs, the returns also get transferred to the consumers.”

Published in Dawn September 28th, 2016

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