National Power Regulatory Authority (NEPRA) allowed the Karachi Electric Supply Company (KESC) for annual collection of Rs 211 million from consumers on account of banking fee in its public hearing which was scheduled to be held on June 3.
Besides, the authority would also review request of the power utility for increasing in power tariff on account of fuel adjustment. KESC had been accused of making a buck by collecting Rs 211 million per years from its 2.2 million consumers illegally, as the utility was charging Rs 8 from every consumer on account of bank charges every month.
Per reports, KESC was charging bank charges from consumers which amounted to Rs 211 million per year. In last NEPRA public hearing, the issue was raised by a consumer claiming that the power utility was charging bank charges from consumers illegally. The complainant displayed a copy of State Bank of Pakistan (SBP) in which the central bank had restricted all the banks from collecting bank charges from consumers of public utilities.
Meanwhile, the electric regulatory authority had accepted the complaint and decided to discuss the legal status of bank charges in the next public hearing. The collection of bank charges from consumers would be among the top agenda of NEPRA public hearing on June 3.
However, the power utility claimed that bank collection charges were in accordance with the NEPRA rules and regulations and approved terms and conditions of tariff notified by the federal government. On the other hand, NEPRA was made aware about KESC right of collecting bank charges from consumers.
“KESC is collecting bank charges from consumers illegally,” KESC Shareholders Association General Secretary Chaudhry Mazhar Ali told Pakistan Today. “KESC is charging its 2.2 million consumers in the metropolis with bank charges and earning million of rupees,” he added.
“The Supreme Court (SC) in its suo moto notice ordered banks not to collect bank fee from consumers in monthly bills,” he said, while adding that the apex court also directed banks to collect its fee from the utlities. “The apex court has observed that companies engaged banks for collection of bills on their behalf so there was no need for consumers to pay bank charges,” he said, adding that “The power utility and banks are making a mockery of the apex court’s orders.”
KESC Spokesman Ahmed Faraz said that power utility was collecting bank charges in accordance with NEPRA rules and regulation. “Terms and conditions of tariff notified by the federal government also allow the authority to collect bank charges from consumers,” he added. NEPRA put this issue on hold in its last public hearing and would discuss this issue in this hearing to enable the authority to decide whether the KESC was eligible for collecting bank charges from consumers or not, he maintained.
Talking to Pakistan Today, NEPRA Registrar Safeer Hussain said that the issue was raised in the last meeting of the authority’s public hearing and it was put on hold for next meeting. “In this meeting we would discuss this issues in detail with all the stakeholders and then we will issue our decision that weather authority can collect bank charges from consumers or not,” he added. “I don’t have any idea that weather NEPRA allowed the power utility for collecting bank fee or not,” he said.
