In the current scenario, the sale of K-Electric would be disastrous for the industrial sector, FPCCI said.
KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has appealed to Prime Minister Imran Khan to stop the sale of K-Electric in the current situation as it would be disastrous for the industrial sector. The PCCI has written a letter to the Prime Minister, appealing for a halt to the sale of K Electric.
The FPCCI has said that in the current situation, the sale of K-Electric would be a major blow to the industries of Karachi, Hub, and Dhabiji. The letter said that billions of rupees have already been given to the K-Electric from the state exchequer. Without reforms, the sale of the K-Electric will not reduce the burden on the national exchequer.
FPCCI said that K-Electric has a monopoly in power generation, transmission, and distribution. Electricity tariff for consumers of K-Electric is higher than all five discos in Punjab. Even after 16 years of privatization, electricity transmission distribution losses are 19.5%. The letter said that K-Electric was obliged to reduce its transmission and distribution (T&D) losses by 15% in 2015. K-Electric’s privatization agreement in 2005 stipulated a reduction in losses. The losses of government DISCOs are less than those of K-Electric. Transmission and distribution losses of LESCO 12.4%, MEPCO 15.7%, GEPCO 9.5%, and IESCO 8.8%.
The FPCCI said that power from K-Electric’s faulty power plants is being supplied to consumers, industries at exorbitant rates, faulty plants are being scrapped across the country, there is also surplus power in the national grid, Billions of rupees have been subsidized on production for 16 years. Unlike WAPDA, K-Electric has not been divided into generation, transmission, and distribution companies. WAPDA has been abolished and NTDC, 10 Discos, and 5 GENCOS have been set up.
The letter said that cheap electricity is the right of consumers and industries of Karachi. K-Electric should also be abolished and set up separate distribution and IPPS on merit. He further said that according to the NEPRA proposal, power generation and distribution cannot be given to one company. To be given electricity.
