Distribution firms fail to satisfy NEPRA on tariff hike

Regulator says it will announce decision after verifying figures

ISLAMABAD:

Power distribution companies have failed to satisfy the National Electric Power Regulatory Authority (Nepra) about their data as the regulator has completed its hearing on a tariff hike of Rs0.85 per unit demanded by the companies.

At a public hearing presided over by Nepra Vice Chairman Saifullah Chatta, the regulator said that it would announce its decision after verifying the figures submitted by the distribution companies and Central Power Purchasing Agency (CPPA).

In their petition, the ex-Wapda distribution companies requested a tariff increase of Rs0.86 per unit on account of variation in the power purchase price (PPP) for the fourth quarter of previous fiscal year. The total impact of the increase will be around Rs85.2 billion. Nepra had also conducted a hearing of the petition last month but deferred it as it found the response of distribution companies unsatisfactory.

On Tuesday, the regulatory authority once again conducted the hearing of the petition seeking quarterly adjustment. CPPA officials informed the regulator that the capacity price of Quetta Electric Supply Company (Qesco) and Sukkur Electric Power Company (Sepco) did not match its figures.

Nepra member from Sindh Rafiq Ahmad Shaikh said that the figures were not final even today. He questioned what they would tell the masses as to why the figures were changed later. The Nepra vice chairman observed that the price of such electricity was also included in the Rs81 billion capacity payments, which was not utilised by the customers. He questioned how much of electricity for which capacity payments were made had been utilised by the distribution companies.

The Nepra case officer said that they would verify the figures, adding that 350,000 cases of new electricity connections were pending with the distribution companies.

The Nepra member from Sindh noted that the capacity price of Lahore Electric Supply Company (Lesco) was higher compared to other distribution companies. He noted that capacity payments had surged due to refusal of power companies to give new connections to consumers. The Sindh member termed it a criminal offence and observed that power distribution companies were involved in delaying tactics in installing new meters.

He said that the delay in installing new meters was incompetence on the part of electricity companies, the price of which was being paid by the consumers.

It was observed that Rs0.15 per unit was already being charged from the consumers, therefore, the regulator would only consider an increase of Rs0.70 per unit in its decision.

Published in The Express Tribune, December 2^nd, 2020.

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