KARACHI: The President of the Korangi Association of Trade and Industry (KATI), Muhammad Ikram Rajput, has vehemently condemned the National Electric Power Regulatory Authority’s (Nepra) and Power Division’s decision to impose Fuel Cost Adjustment (FCA) and Fuel Cost Component (FCC) charges on K-Electric consumers for the FY24.
Rajput described the move as “unacceptable”, arguing that it unfairly burdens both the people and industries of Karachi.
He highlighted that, according to Nepra’s documents, the decision will extract nearly Rs28 billion from Karachi’s consumers. In contrast, the Rs33bn relief package promised to the city’s industries during the Covid-19 pandemic has yet to be disbursed.
“Rather than offering relief, the government is retracting its previous commitments and imposing new financial burdens that could severely damage Karachi’s industrial base,” Rajput said.
While K-Electric’s multi-year tariff (MYT) is still under review, Rajput expressed concern that authorities are revisiting past decisions, exacerbating uncertainty for the business community.
He accused Nepra of undermining its own claims of transparency by altering previous rulings and introducing fresh liabilities, actions he argued go against the fundamental purpose of the MYT framework.
Rajput also pointed out that the current tariff of Rs32.57 per unit for K-Electric is significantly lower than tariffs imposed on other distribution companies across the country. Yet, Karachi’s industries are being forced to subsidise power utilities in other regions that are running at a loss. “This is grossly unjust and cannot be accepted,” he stressed.
Published in Dawn, November 5th, 2025
