During the hearing, the CPPA informed the panel that 6.67 billon units of electricity were sold in the month of November 2012, with Rs48.27 billion as the fuel cost. PHOTO: FILE
The power regulator held a public hearing on Wednesday to decide on raising the power tariff for the month of November on account of fuel adjustment surcharges, as demanded by the Central Power Purchasing Agency (CPPA).
The move will burden all electricity consumers, except lifeline users and those on the Karachi Electric Supply Company (KESC) network, with Rs6.16 billion in extra charges.
Earlier, the Islamabad High Court, in a decision taken in October, had already declared fuel adjustment charges levied retrospectively on consumers as null and void. The court had also ordered power distribution companies to reimburse all amounts received on account of fuel adjustment surcharges.
During the hearing, Nepra members sought an explanation from CPPA authorities, asking whether a notification could be issued when the Islamabad High Court had declared the practice null and void. It also asked the CPPA to explain how the fuel adjustment surcharge could be recovered from consumers until court provided a detailed verdict on the issue.
The CPPA came up with the proposal that distribution companies be delegated the authority to determine the fuel adjustment surcharge themselves without the involvement of Nepra. CPPA General Manager Masood Ahmad said that the option could be exercised in the presence of the court order, and said that there is a precedent for the move.
However, Nepra turned down the proposal and said that doing so was no longer possible as the power regulator had stopped the practice following the orders of the Lahore High Court. Thereafter, Nepra was directed to determine the fuel adjustment surcharge through public hearings.
During the hearing, the CPPA informed the panel that 6.67 billon units of electricity were sold in the month of November 2012, with Rs48.27 billion as the fuel cost. However, power worth Rs380 million was lost due to transmission and distribution losses.
The regulator also approved the transfer of an additional burden of Rs879 million to consumers on account of low and high sulphur fuel oil consumed by the Kot Addu Power Company, and another Rs39 million on account of partial load adjustment charges for the Hub Power Company. These raises will be notified after the Islamabad High Court provides its judgement on the issue.
Meanwhile, Nepra also directed its legal advisors to seek a legal opinion from the Islamabad High Court Bar Association regarding the approval and notification of the hike in the power tariff.
Published in The Express Tribune, December 27th, 2012.
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@Chimichanga: He is trying his best but the problem is that Hafeez Sheikh don't know more then Print money. Raise prices. Print money. Raise prices. Borrow from IMF & Raise prices about economics.
Print money. Raise prices. Print money. Raise prices. Borrow from IMF. Print money. Raise prices.
This is Pakistan's economic policy thanks to Hafeez Sheikh and other economic hit-men.