The Karachi Chamber of Commerce and Industry (KCCI) has urged the National Electric Power Regulatory Authority (NEPRA) to defer a proposed increase of security deposits to power distribution companies (DISCOs) until all necessary information has been made public and consultations undertaken with all stakeholders.
In a letter addressed to the NEPRA registrar, KCCI President Muhammad Jawed Bilwani noted concerns among members of the business community, trade bodies, and consumers over petitions filed by various DISCOs seeking hefty hikes to security deposits for power connections. If the proposals are approved, he warned, they will excessively burden consumers, businesses, and industries nationwide.
Referring to the proposals, he said DISCOs aimed to revise security deposit rates in accordance with electricity consumption, property size, and market value. Without a transparent rationale, he warned, this would create undue financial hardships for consumers and businesses alike.
“The proposed increase, such as raising B2 security deposits from Rs. 2,010/KW to Rs. 54,783/KW is excessive and financially inviable,” he said. He claimed if introduced this policy would force consumers to shift to solar power, further reducing usage of DISCOs.
Stressing on the need for any deposit revision to follow an extensive consultation process involving all relevant stakeholders, he said no steps should be taken that further strain businesses and consumers.
Bilwani also criticized K-Electric for seeking more deposits, noting its current deposits aimed to sanction 13,000MW. Yet, he noted, the electricity demand was 3,500MW during peak hours. “This clearly indicates how excessively the utility service has exploited the public by imposing unfair security deposits,” he said, adding there were similar examples in DISCOs nationwide.
Separately, Bilwani also urged NEPRA to seek an extensive audit of security deposits and consumer contributions. Per regulatory obligations, he noted, any interest accrued on consumer security deposits must be accounted for and returned to the respective consumers.
“A transparent and publicly available audit will enhance consumer trust, ensure regulatory compliance, and contribute to a fairer power sector,” he added.