Government seeks NEPRA’s approval for tariff hike

Regulator will announce decision after third member joins authority decision

ISLAMABAD: The federal government on Monday sought approval of the power regulator - the National Electric Power Regulatory Authority (Nepra) - to regularise increase in power tariff by Rs1.27 per unit to implement the uniform tariff across the country.

A representative of the Ministry of Energy (Power Division) informed the power regulator during a public hearing that the government had hiked the average power tariff by Rs1.27 per unit. The existing uniform power tariff was Rs11.71 per unit, which would go up to Rs12.98 per unit, the representative added.

However, the question was raised over the legality of two members conducting public hearing, due to limited quorum of the authority. At present, the power regulator has two members and the third one is yet to be appointed.

During the hearing, Nepra Member Punjab Saifullah Chattha admitted that three members were required to decide any matter relating to power distribution companies. However, he said, the hearing could be conducted by even one member of Nepra.

The hearing was recorded and the decision of uniform power tariff would be given after the third member is appointed and joins the office, he added. This was the reason members of Nepra reserved the judgment, which would be announced after the third member joins the authority.

Power Division Joint Secretary Zargham Eshaq Khan said the power regulator had determined an increase in power tariff of Rs3.8 per unit for power distribution companies, but the federal government had made average increase in power tariff of Rs1.27 per unit. He said the government would give subsidy for domestic consumers using less than 300 units per month.

The government had set the target for power distribution companies to bring improvement and efficiency in the system that would generate Rs140 billion in revenue, he said, adding the government would not be able to receive Rs80 billion on account of net hydel profit from consumers.

A textile sector representative said the sector was facing problems due to depreciation of rupee against the US dollar. In response to that, the representative of the Power Division said it would move a summary soon to the Economic Coordination Committee (ECC) recommending a setting fixed date for issuing electricity bill to the textile sector to overcome the issue of exchange rate.

Published in The Express Tribune, November 27^th, 2018.

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