ISLAMABAD: The National Electric Power Regulator Authority (Nepra) on Monday quizzed the top brass of Sukkur Electric Supply Company (Sepco) and Hyderabad Electric Supply Company (Hesco) for their dismal performance with respect to investment, higher losses, less recovery and theft.
The Authority comprising, Chairman Tauseef H Farooqi, Member Sindh, Rafique Ahmad Shaikh, Member KP, Maqsood Anwar Khan, Member (Finance), Mathar Niaz Rana and Member (Legal) Amina Ahmed questioned different numbers presented by both the Discos in their presentations.
CEO, Sepco, Saeed Ahmad Dawach and CEO, Hesco, Muzaffar Abbasi and their teams presented cases for increase in tariffs for FY 2023-24 based on different assumptions/projections.
Sepco has sought a raise of Rs 2 per unit in its tariff from existing tariff of Rs 29.35 per unit to Rs 31.12 per unit whereas HESCO has requested an increase of Rs 15 per unit to Rs 45.53 per unit from Rs 30.53 per unit.
During the hearing, the Nepra Chairman proposed end of free electricity to the officials/ employees of Wapda/DISCOs, etc. He suggested that the approved limit of units be monetized in the salaries to avoid misuse of free electricity. The Member Finance, proposed that DISCOs should be handed over to private sector aimed at bringing improvement in DISCOs system and provision of electricity to consumers at affordable rates.
Member Sindh gave reference of a book written by former Managing Director Pepco, Tahir Basharat Cheema about the power sector, according to which DISCOs in Sindh, KPK and Balochistan were not extended required funds for improvement of infrastructure.
In reply to a question put forth by Chairman Nepra, CEO Sepco responded that negotiations with Sindh on provincialisation of Sindh -based distribution companies are in progress, adding that he also attended a couple of such meetings. He said, performance of DISCOs will improve if provinces take them over.
Responding to a question, CEO Secpo said, registration of FIRS against electricity thieves in Sindh is very difficult as Police do not cooperate with the officials of DISCO. He further stated that Police first checks political connection of the one stealing electricity before registration of FIR.
SEPCO has sought funding of Rs 24 billion for FY 2023-24 for investment and other expenses of the company during the year. The company has also supported commercial tariff for cold storages.
Hesco’s CEO and CFO, also gave a presentation to the Authority on performance of the company during FY 2021-22 and sought approval of an amount of Rs 63.822 billion under different heads including Rupee depreciation and free electricity to officials/employees for the next fiscal year.
During the hearing one of the key issues, which came under significant discussion was detection bills being send to those consumers who are actually poor and not influential.
According to Muzaffar Abbasi, who is actually a Board Member, not a regulator CEO, apprised the Authority that . officials, issued detection bills to 1,393,774 consumers amounting to Rs 10.56 billion during FY 2021-22 of which just Rs 663 million were recovered which is, ie, 6.34 per cent of total detection bills. Currently, Rs 135 billion is outstanding on account of detection bills .He said, 1/4 of supplied electricity is stolen and detection bills are served to poor consumers. In addition, the company has also paid 17 per cent GST on supplied units in the past. However, now the mechanism of GST recovery has changed. He maintained that Company’s financial health has deteriorated for the last ten years due to theft.
CEO said, he is taking measures to reduce losses, control theft and improvement performance of the company.
CFO Hesco, Hina Talpur, whose appointment is under scrutiny, sought an increase of Rs 15 per unit in tariff for FY 2023-24.
Copyright Business Recorder, 2023
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