M. Jawed Bilwani, Senior Vice-President, Karachi Chamber of Commerce & Industry, expressing deep concern on issuance of Notices by KESC to industries in S.I.T.E. Area demanding payment in the form of Security Deposit. He strongly disputed the legitimacy of the Notices by KESC and urged the authorities to urgently examine them in light of NEPRA decision.
He questioned KESC's strange and illogical ways to improve its financial position at the cost of seriously ailing industries that are on the verge of closure. He said it's critical time for the manufacturing sector with recession all around and the industries suffer frequent load shedding and voltage fluctuation, which not only damages machinery and equipment but also adds to the cost of production.
Since the KESC, through differential tariffs enjoys one of the highest power rates in the world, such Notices demanding payment of Security Deposit is all the more perplexing. The Senior Vice President quoted NEPRA Decision dated August 20, 2003 on Case No. NEPRA / TRF- 22 / KESC- 2003 "DETERMINATION OF SECURITY DEPOSIT AND SYSTEM DEVELOPMENT CHARGES AS NOTIFIED".
In the said Decision, Security Deposit is defined as under, "A Consumer will be required to pay to KESC, an amount as security as approved by the Authority before the provision of a new connection, restoration of the connection or the approval of extension of load. This amount paid to the KESC will be considered as the Security Deposit (SD).
If the consumer no longer wishes to continue its electric power connection, KESC shall be liable to refund the SD to the consumer on demand. In case the consumer does not pay the electricity dues, KESC may adjust the SD against the outstanding amount billed to the consumer. The amount of security deposit may also be transferred to a new consumer availing the existing connection with the consent of the existing consumer."
Mr. Bilwani said that in view of the above decision of NEPRA, the utility could raise a demand only in the following cases: