Karachi’s Fuel Surcharge on Power Bills Unacceptable, Must Be Withdrawn, KATI

KARACHI : The President Korangi Association of Trade and Industry (KATI) Muhammad Ikram Rajput has
strongly condemned the decision of the National Electric Power Regulatory Authority (NEPRA) and the
Power Division to recover Fuel Cost Adjustment (FCA) and Fuel Cost Component (FCC) charges from K-
Electric consumers for the fiscal year 2023-24.
Ikram Rajput said the move amounts to placing yet another unjust burden on the people and industries
of Karachi, calling it unacceptable. Citing NEPRA’s own documents, he noted that the decision would
extract nearly Rs28 billion from Karachi consumers, while the Rs33 billion incremental consumption
relief package announced during the Covid-19 period has still not been paid to the city’s industries.
“Instead of providing relief, the already-approved support is being rolled back and new financial burden
is being imposed,” Rajput stated. “This is equivalent to destroying Karachi’s industrial base.”
He added that K-Electric’s multi-year tariff (MYT) is already under review, yet authorities are revisiting
past decisions in the meantime, creating severe uncertainty for the business community.
Rajput criticised NEPRA for claiming transparency while simultaneously altering previous rulings and
imposing fresh liabilities, a practice he said contradicts the fundamental purpose of MYT.
The KATI president further argued that the current tariff of Rs32.57 per unit for K-Electric is significantly
lower compared to other distribution companies, yet industries in Karachi are being made to subsidise
loss-making power utilities in other regions. “This is unjust and cannot be accepted,” he stressed.
Rajput warned that if the situation continues, K-Electric could face a financial crisis or even bankruptcy,
which would directly harm Karachi’s industries, jobs and economic activity.
He urged the government and NEPRA to immediately withdraw the FCA recovery decision and release
the pending Rs33 billion relief package. He asserted that Karachi’s business community will defend its
rights at every platform and will not compromise on the city’s industrial and commercial interests.