KARACHI, Oct 20: Amid mounting public outrage against a massive increase in power tariff by the Karachi Electric Supply Company, the utility has been directed by the government to cut down the tariff hike from 70 per cent to 5.5 per cent for the consumers whose electricity use is up to 100 units a month.

According to KESC spokesman Qashif Effendi, the drastic cut would not only benefit more than 15 per cent “lifeline consumers” but also those who fall in other slabs. The directive to lower the tariff increase for that slab was issued by the federal government on Monday afternoon, he said.

However, he was sceptical about the possibility of a similar reduction in the power tariffs for traders, industrialists and other consumers, who recently refused to pay the increased tariff and threatened to hold a series of protest demonstrations if the utility or the government failed to pay heed to their demand.

Traders have announced that they will go on strike on Friday to lodge their protest against what they described as conspiracies against Pakistan’s industrial and trading hub. They also declined to attend a meeting called by the KESC and refused to pay the bills. A religious-political party has also given a strike call for Friday against load-shedding and highly inflated power bills issued to consumers who have already been undergoing seriously deteriorated situation of power supply.

Despite a mandatory ban on any raise in power tariff that was imposed for seven years at the time of the KESC’s privatization, the government on October 9 allowed the utility to raise the tariff that is expected to double electricity bills of the coming months.

The rate for the consumers spending up to 100 units was increased from Rs2.92 to Rs4.97 per kilowatt-hour, excluding tax. Those spending between 101kWh and 300kWh will be charged at the rate of Rs6.13 a kWh as against Rs4 that was the rate on March 1, representing an increase of 53 per cent. The consumers using 301 to 1,000 units will be required to pay Rs8.58 per unit and the people consuming more than 1,000 units will have to pay Rs9.80 per unit.

Commercial consumers spending up to 100 units will charged at a rate of Rs9.93 per unit while those using between 101 and 300 units will be required to pay Rs10.04 per unit.

Industrial consumers spending 400 kilowatt-hours off-pack will be charged at the rate of Rs8.05 per unit while those using full pack will be required to pay Rs8.15 per unit.

Under the new tariff scheme there shall be minimum monthly charges even if no energy is consumed during the month. This will be Rs45 for a single-phase connection and Rs100 plus Rs25 per kWh for load in excess of 5kWh for a three-phase connection. For commercial consumers it will be Rs150 for a single-phase connection and Rs300 plus Rs30 per kWh for a load in excess of 10kWh for a three-phase connection.

“It is just an eyewash and I am sure that 90 per cent of consumers will not get benefit out of the latest relief announcement,” said Zubair Motiwala, a leading industrialist of the city.

“A very large section of electricity consumers in the residential areas definitely consume electricity more than 100 units so there is no relief announcement,” he said.

He criticised the utility for excesses against industrialists claiming that in SITE area where theft and pilferage of electricity was mere 12 per cent and collection of power bills was 97 per cent, its industries were subjected to 38 per cent increase in tariff during off-peak hours and 58 per cent raise in tariff increase during peak hours that would cast devastating effects on the industrial sector.

Mahmood Hamid, the Karachi President of the All Pakistan Organisation of Small Traders and Cottage Industries, said the tariff for electricity consumption in the city without the recent announcement in increase had been already too unjust and unreasonable and the increase should be altogether withdrawn for the sake of conserving sustenance of markets, industries and small traders.

He said a bulk of consumers, especially in trade and industry sectors, would continue suffer as they would have to pay bills with unreasonable increase in charges for using electricity.

When asked what will be fate of those consumers who have already paid the inflated bills, the KESC spokesman Qashif Effendi the amount would be adjusted in their next bills, though he believed most of the consumers falling in 1-100 units category have not yet been sent the bill.

Terming the latest cut in the tariff hike mere eyewash, Captain (retired) Mohiuddin of the Concerned Citizens Association called for putting a cap on any tariff increase. The association demanded an investigation into the causes of rapidly dwindling generation and other infrastructure and a probe to find out where billions of rupees given to the KESC’s privatized management had been spent.

Various non-governmental organizations have urged the KESC to sustain its power tariff as per commitments of the new owners at the time of its privatisation, saying that discrimination with power consumers in Karachi was highly deplorable. They urged the public representatives from Karachi to take a firm stand for the reversal of the enhanced part of the electricity tariff by quitting their ministries in the provincial government, as was done by the PML-Nawaz in case of non-acceptance of their demand for the reinstatement of the deposed judges.

Several organizations of traders and businessmen have already announced their firm determination not to pay their electricity bills for the month of September until the government withdraws unprecedented increase in power tariff.