Defying court orders: NEPRA approves controversial hike in power tariff
Islamabad High Court has barred retrospectively levied surcharges.
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
ISLAMABAD:
Despite a stay orders from courts, barring power firms from retrospectively collecting additional electricity charges from consumers, the National Electric Power Regulatory Authority (Nepra) on Wednesday approved a Rs0.91 per unit hike in the power tariff on account of fuel adjustment surcharges for the month of November 2012.
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.
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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Despite a stay orders from courts, barring power firms from retrospectively collecting additional electricity charges from consumers, the National Electric Power Regulatory Authority (Nepra) on Wednesday approved a Rs0.91 per unit hike in the power tariff on account of fuel adjustment surcharges for the month of November 2012.
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.
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.
Like Business on Facebook to stay informed and join in the conversation.