KESC calls for a stay to NEPRA’s revision of tariff

Utility fears a loss in profitability, asks power ministry to hold notification.

ISLAMABAD: As the National Electric Power Regulatory Authority (Nepra) and the Karachi Electric Supply Company (KESC) lock horns in a row over the power tariff, the latter addressed to the Ministry of Water and Power has requested it to avoid issuing any statutory notification till the dispute is resolved.

In a corrigendum issued on November 23, 2012, Nepra had said that the schedule of tariff (SOT) for KESC had to be uniformly increased by Rs2.79 per unit for all categories of consumers except lifeline consumers. However, in the schedule of tariff (SOT) issued on June 2010, the determination was incorrectly adjusted for four consumer categories and the effect was carried forward in subsequent SOTs up to the quarter from January 2012 to March 2012.

The four categories adjusted incorrectly for the period starting July 2009 till March 2010 were: residential consumers using 1-100 units, who were charged an additional Rs3.33 per (instead of Rs2.79); consumers using 101-300 units, charged Rs2.99 per unit; consumers who used 301-700 units, charged Rs3.19 per unit; and the agriculture sector, charged Rs2.16 per unit of electricity used.

Fearing a hit to its profitability, the KESC has called for its voice to be heard on the issue in a letter sent to Water and Power Secretary Nargis Sethi. The letter said that until the issue is resolved in accordance with due process, the Ministry of Water and Power should avoid issuing any statutory notification with regard to the corrigendum.

In another letter written to Nepra, KESC said that the regulator had condemned KESC before hearing its version of facts. It said that Nepra had acted unilaterally to review its decision dated June 30, 2010, which is not permissible under applicable laws and regulations. It said that Nepra’s tariff determination communicated to the KESC on June 30, 2010 was legally in force and was not open to question.

KESC officials said that Nepra had acted selectively and unfairly through the corrigendum by choosing to penalise the KESC for approximately 14.3 paisas per unit as the differential on tariff claims.

Published in The Express Tribune, December 7^th, 2012.