By SKM
August 28, 2025
ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) is under fire for imposing retrospective RLNG charges from 2015, a move slammed by the Power Division, private sector, and even Karachi Electric (KE) during a heated NEPRA hearing held here on Thursday (August 28, 2025).
If enforced, the charges could raise power tariffs by Rs 2-4 per unit, sparking outrage from industrialists already grappling with high costs.
“No one knows the actual RLNG rate. How can we plan?” said exporter Aamir Sheikh. “This uncertainty is killing jobs and exports.”
OGRA’s decision—made without public hearings—was called a breach of transparency and legality. CPPA-G’s CEO even admitted industry concerns were “fair,” revealing OGRA had declared old RLNG bills as ‘provisional’, a term never used before.
Meanwhile, CPPA-G sought a negative Fuel Charges Adjustment (FCA) of Rs 1.69/unit for July 2025, promising Rs 12.5 billion in refunds. But stakeholders questioned why Rs 10 billion in negative FCA for KE consumers (May–June) was withheld.
NTDC reported technical upgrades that boosted KE’s supply from 1,600 MW to 2,000 MW, improving wind energy integration. KE’s storm response also drew praise, with NEPRA commending CEO Moonis Alvi for personally overseeing grid restoration.
Industrialists flagged deeper systemic issues—outdated rules, poor grid infrastructure, and excessive capital costs.
“Why are we still using 20-year-old benchmarks?” asked Arif Bilwani. “And why force industries to build 132 kV grids when 66 kV would suffice?”
The Karachi Chamber of Commerce and Industry (KCCI) pointed to governance failures, citing the Rs 481 billion unpaid by Discos in 2023–24 and Rs 4.8 trillion in irregularities flagged by the Auditor General in 2024–25.
The debate over withheld KE refunds also escalated, with critics insisting such decisions require Cabinet approval and cannot be enforced retroactively. KE, however, supported uniform FCA as a stabilizing move for consumers.
Despite diverging views, the hearing exposed a clear truth: regulatory gridlock and policy missteps are driving up costs—and consumers will pay the price. ENDS
