KARACHI: A joint meeting of the industrial associations and bodies representing the textile sector on Saturday decided to initiate a legal case against the National Electric and Power Regulatory Authority (Nepra) and the Economic Coordination Committee’s (ECC) decision to retrospectively increase K-Electric’s tariff by Rs2.89 per unit.

The participants, according to a press release issued after the meeting, said that this continuous abuse from Nepra and the KE will not be tolerated anymore. If the government does not take responsibility, then industries would take the necessary steps to approach the Supreme Court.

The ECC should have studied the repercussions of this retrospective tariff collection from industries which are already hit by Covid-19 and many are unable to sustain the economic volatility, they added.

Industries are suffering huge losses due to load shedding on a daily basis. They noted that Nepra has been completely ineffective in carrying out its responsibilities. They said that even though Nepra allows stakeholders to voice their concerns at its meetings, the outcome of the exercise is absolutely zero.

If the authority is unable to do its job, then it needs to be replaced with independent and competent professionals who have the authority to carry out their obligations in line with rules, they demanded.

Moreover, they also said the power ministry continues to observe the situation as a silent spectator. The house unanimously suggested that Nepra’s nomenclature requires a fundamental change.

In addition, they said Nepra’s board should have cons­umer representation with at least three representatives if the total strength of the board is eleven.

Participants at the meeting feared a drop in exports by 40 per cent as coronavirus has massively hurt exports and domestic sales.

Stakeholders urged Prime Minister Imran Khan to bring down the cost of utilities to a sustainable level to safeguard the industry as well as protect jobs of millions of labor and staff.

The meeting questioned the rationale behind on how the ECC, on the advice of Nepra, can give a free hand to the KE to collect dues that are retrospective in nature. Meanwhile, they said some of the past decisions taken by Nepra are already in litigation.

They unanimously appea­led to the federal government to take serious note of what the KE treatment of Karachi’s people and industries.

They urged PM Khan to sell the KE to Pakistan-based companies and should be an industrial concern rather than an investment company or foreign entity.

The KE, given its monopoly over the sector, is also acting cunningly and at times goes against the regulator — Nepra — in the court of law when any decision comes against it and in favour of consumers.

Currently, the KE has the highest number of litigations/cases in the court of law against the government auth­or­ities as well as consumers. They further appe­aled to unbundle the KE before selling it to any other entity.

They said that the generation and distribution should be treated as two separate parts and be sold to different entities and distribution should be further unbundled and divided into five distributing companies for five divisions of Karachi. In this way, KE’s monopoly can broken and competition will be created in the city’s utility sector, they said.

The meeting was attended by representatives from the Karachi Industrial Forum, Council of All Pakistan Text­ile Associ­ations, SITE Associ­ation of Industry, Bin Qasim Assoc­iation of Trade and Industry, F.B. Area Associa­tion of Trade and Industry, Korangi Association of Trade and Industry, SITE Super High­way Association of Trade and Industry, North Karachi Association of Trade and Industry.

Landhi Association of Trade and Industry, Paki­stan Hosiery Manufacturers and Exporters Association, Paki­stan Readymade Gar­ment Manufacturers and Expo­rters Association, Pak­i­stan Knitwear and Sweater Expo­rters Associat­ion, Pak­istan Cotton Fash­i­on Appa­rels Manuf­acturers and Expo­rters Association, Paki­s­tan Cloth Merchants Association, Pakistan Den­im Manufact­urers and Exp­o­rters Associ­ation, All Paki­stan Textile Processing Mills Association and All Pakistan Bedsheets and Upholstery Manufactu­rers Association.

Published in Dawn, July 19th, 2020