KCCI requests Nepra to reconsider proposed hike in security deposits

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KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has called on the National Electric Power Regulatory Authority (NEPRA) to suspend the proposed hike in security deposit rates through distribution companies (Disco). Unless all relevant information shares transparently with stakeholders.

It also called for a comprehensive and meaningful consultation process to ensure that any decision considers the financial obstacles of both consumers and businesses. In a letter to the NEPRA Registrar, KCCI President Mohammad Javed Bulani said that members of the business community, commercial agencies and consumers seek a significant increase in the security deposit rate for power contacts. The petitions filed by the petitions have expressed serious concerns. He warned that if approved, these proposals would put excessive financial burden on consumers, businesses and industries across the country.

Blacki highlighted that the disco has sought the approval of NEPRA to revise the power consumption, property size and even market price -based security deposit rates. He warned that such a tremendous increase-without justifying a transparent and well-known justification-would create additional financial difficulties for users and businesses who already struggle with electricity prices and economic pressure. There are

He remarked, “The proposed increase, such as raising B2 security reserves from Rs 2,010 to Rs. He added that such an unbearable increase in security reserves will not leave consumers except to convert solar power to self -powered electricity, and the disco will be pushed into a crisis because Their user base shrinks.

The President of the KCCI emphasized that any review should go through a broader consultation process, including all relevant stakeholders, including commercial companies, Chamber of Commerce and consumer associations. Before implementing any steps that can put more pressure on the business and consumers, a complete effect is necessary before implementing it.

The Bulani also pointed out that Disco and K Electric (KE) have already collected security reserves, which is four times the maximum demand and seven times higher than the average demand for consumers. He revealed that for example, KK has collected security reserves equal to the approved burden of 13,000 MW (MW). However, even at peak hours, the highest demand for electricity reaches only 3,500mW, while in normal circumstances, its average average is between 2,200mW and 2,400mW.

“This clearly shows how the utility has benefited from the need for people by imposing unfair reserves of security,” he added, adding that this situation is the same all over the country, where all the disco. He has approved a total burden of 97,800 MW, while the demand for national peak electricity only arrives. 23,000 MW

In another letter to the NEPRA Registrar, the Bulani called on the regulator to instruct all disco to conduct a comprehensive audit of security reserves and consumer contributions, to ensure public disclosure of these funds. He emphasized the need for a detailed report about the total security reserves placed near each disco, as well as the error was eliminated how these funds have been used over time.

He insisted that any interest on consumer security reserves must be accounted for and that they should return to consumers according to regulatory responsibilities. The Bulani also highlighted that consumers directly finance a significant part of the power infrastructure, including all voltage levels involved in installations and grid sharing. The costs are then transferred to consumer financial -supported assets without any compensation, which raises concerns about their regular asset to join the RAB. He called on NEPRA to ensure that disco consumers were making unfair profits on financing assets by consumers.