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KATI urges Leghari to order audit of PPMC, ISMO

Business Recorder • • 1 min read

KATI urges Leghari to order audit of PPMC, ISMO

Business Recorder reported that the Korangi Association of Trade and Industry (KATI) has asked Federal Energy Minister Sardar Awais Ahmad Khan Leghari to commission an independent audit of PPMC and ISMO. KATI says gaps in their data and modelling for the Incremental Consumption Package could have left industrial users paying too little for added electricity, with other consumers covering the difference through the Fuel Cost Adjustment (FCA).

The package was approved at Rs22.98 per unit, while NEPRA’s tariff team put the incremental supply cost at about Rs31.83, or Rs29.65 after ISMO’s operational tags. KATI also cited a Power Division estimate of an annual Rs180 billion contribution-margin loss from declining electricity sales, and called for lower industrial tariffs and a pause on the proposed two-part tariff until its modelling is audited. It wants the audit findings shared with NEPRA and stakeholders, alongside disclosure of FCA recoveries.

At a glance

  • KATI wants an independent audit of PPMC and ISMO’s package data and modelling.
  • NEPRA’s estimated incremental supply cost exceeded the approved Rs22.98 rate.
  • KATI called for disclosure of FCA recoveries linked to the package.
Sectors:Power Generation & Distribution

Originally reported by Business Recorder

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