Cheaper gas is being diverted towards influential captive power producers.

ISLAMABAD   -   Eight industrial associations of Kara­chi, while terming gas subsidy to cap­tive power plants discriminatory and unjust, has claimed that violation of gas supply priority list results in high­er fuel charge adjustments (FCA) for residential and industrial consumers.

Eight industrial associations of Kara­chi collectively denounced the decision to supply captive power plants with subsidized indigenous gas, terming it a violation of the Gas Allocation Policy 2018. They revealed that this was the real reason behind the exorbitant fuel charges in electricity bills, as in the face of gas shortages, SSGC was left with no alternative but to supply ex­tremely overpriced RLNG to K-Electric.

“Increasing fuel charge adjustments (FCA) are being charged by the K-Elec­tric on account of RLNG being used for generation instead of local gas. Mean­while, cheaper gas is being diverted towards the influential captive power producers which profit at the expense of consumers of Karachi. This is why elec­tricity has gone beyond the affordability of consumers of Karachi,” explained Re­han Javed, Advisor to various industrial associations of Karachi on power and chairman of Sind Paper Mills Forum. He further elaborated, “Per the federal cabinet committee decision on energy in 2018, SSGC was directed to provide at least 130 MMCFD of natural gas to KE. In contempt of this decision, SSGC is cur­rently supplying KE with 100 MMCFD RLNG which is 5 times more expensive. This is why KE will charge FCA of Rs. 11/kWh from the people of Karachi. Com­bined with the government’s increase in electricity tariff, this means that ordinary people of Karachi will pay Rs. 48 per unit of electricity while the rich captive pow­er owners pay Rs. 13 per unit. This is a discrimination against the poor masses.”

Members of the other associations concurred with Rehan, calling the viola­tion of the agreement a complete dispar­ity and injustice. Haroon Shamsi, presi­dent of the Federal B Area of Trade and Industries, further urged the federal gov­ernment to immediately intervene and instruct SSGC to provide the indigenous gas to KE at OGRA approved rates, warn­ing that continued violation of the natu­ral gas allocation policy would result in the closure of business, unemployment, and misery among the people