The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has filed a formal NEPRA petition urging action against distribution companies over the use of privately built electricity infrastructure in Karachi’s industrial areas.
The association has approached the National Electric Power Regulatory Authority, claiming that distribution licensees have been using private power systems without proper consent or compensation.
The dispute centers on industrial zones where factories installed their own electricity systems decades ago. PHMA argues that these systems are now being used for third party connections without legal approval from owners.
PHMA Raises Concerns Over Private Distribution Systems
PHMA said many factories built Dedicated Distribution Systems during the 1970s and 1980s. These systems included private substations and 11kV infrastructure installed on factory owned land.
The association stated that these systems were originally meant for exclusive industrial use. It added that distribution companies later extended supply to nearby consumers through the same infrastructure.
PHMA claims this was done without written consent from the original owners. It also alleges that no compensation was provided for the use of private land or equipment.
Allegations Against DISCOs Over Regulatory Violations
The association has accused distribution companies of violating regulatory rules. It referred to provisions under NEPRA consumer guidelines that require a written No Objection Certificate before any third party connection is made through private systems.
PHMA argues that many connections were issued without such approval. It says this action breaches both regulatory manuals and licensing conditions.
The association further claims that private system owners were neither informed nor consulted. It describes this as a long standing regulatory gap that has harmed industrial stakeholders.
Industrial Owners Claim Loss of Control Over Property
PHMA has raised concerns about practical consequences for factory owners. It stated that landowners often face difficulties when they try to sell, close, or redevelop their properties.
According to the association, distribution companies refuse to shift connections unless the owner pays relocation costs. PHMA argues that these costs should not fall on private owners when the infrastructure was used without consent.
The association described the situation as a form of restriction on property rights. It said owners are unable to fully control or develop their land due to public utility installations.
Dispute Over Conversion of Private Systems into Public Networks
A key issue highlighted in the NEPRA petition is the conversion of Dedicated Distribution Systems into Common Distribution Systems.
PHMA said existing regulations allow distribution companies to convert private systems into public infrastructure. It argued that this conversion happens without compensation to the original owners.
The association added that once converted, the infrastructure becomes part of public use while ownership rights of the original builders are not recognized financially.
It claimed this creates an imbalance where private investment is absorbed into public utility networks without reimbursement.
PHMA Cites Constitutional Property Rights
The association has cited constitutional provisions under Article 24 of Pakistan’s Constitution. It states that no property can be taken for public use without lawful authority and compensation.
PHMA argues that current regulations do not meet this requirement. It says private infrastructure is effectively being used for public benefit without financial settlement.
The association claims this raises legal and constitutional concerns that require urgent regulatory review.
Five Key Demands Submitted to NEPRA
PHMA has requested National Electric Power Regulatory Authority to take immediate action through five major reforms.
It has asked for identification of all third party connections running through private systems without proper consent. It also wants such practices stopped immediately.
The association demands that distribution companies bear all relocation costs where connections were made without approval. It also seeks mandatory relocation within 90 days when property owners plan redevelopment.
PHMA has also called for compensation based on market value for both land use and infrastructure before any system conversion. It insists that owner consent must be required before such changes.
The association further wants a standardized No Objection Certificate system. It has also requested a public record of all connections passing through private infrastructure.
Finally, PHMA has demanded refunds for owners who previously paid relocation costs. It wants these refunds processed within 90 days.
Call for Regulatory Reform in Power Distribution Sector
PHMA has expressed confidence that NEPRA will review the petition and take appropriate action. The association believes the current framework needs urgent reform to protect industrial investors.
The dispute highlights growing tensions between private industrial infrastructure and public utility expansion. It also raises broader questions about regulatory fairness and compensation mechanisms.