Regulator’s warning: Power sector will be doomed if Discos fail to mend their ways

ISLAMABAD: The power sector regulator said on Tuesday that the sector would not be made viable the way distribution companies are functioning and owned its report on overcharging consumers in July and August 2023.

While hearing the amendments in the Consumer Services Manual (CSM), presided over by the chairman of National Electric Power Regulatory Authority (Nepra), the members of the authority deplored that consumers have no faith in the power sector, and the way Discos are functioning the power sector will not survive for long.

Serious concerns were expressed by the stakeholders including the regulator over Discos’ petitions to allow them to increase the installation fee of urgent electricity meters to Rs15,000 for a single-phase meter and Rs30,000 for a three-phase meter.

The Nepra and stakeholders expressed strong reservations on the proposal and the authority sought details of pending connections. The Nepra also wanted to know as to why the meters were not installed by the Discos within the prescribed timeframe after it was informed that pending applications of new electricity meters have accumulated to 119,000 in the last 30 days. And this does not include previous pendency.

The representative of Discos blamed the shortage of meters due to the restriction on imports of raw material, upon which the authority stated that if the meters are not available then why the petition was moved for urgent meters and wondered from where the meters come for urgent fee.

The authority also considered the proposals with regard to 14 per cent interest on late payment of bills, as well as, theft, metering tampering in connivance with the Discos’ officials. The hearing was informed that new law proposed that for the third time electricity theft, five times the bill and appliances will be confiscated.

On the issue of CSM, the authority remarked that instead of increasing charges for urgent meter fee the Discos should increase consumption of electricity.

The proposal was that there should only be one meter in one-gated house even though there are various portions in it. Upon this, the members of the authority stated that this might lead to serious feud among families as there could be more than one family residing in multiple portions of a single-gated house.

On the issue of its over-billing report, the authority said that it owns its report on over-billing as it was prepared after an in-depth inquiry and taking data from Power Information Technology Company (PTIC). The report on over-billing by the regulator power distribution companies is with regard to July and August 2023.

The authority; however, did not agree to the reservations of the Ministry of Energy (Power Division) with regard to the report prepared and stated that an inquiry committee comprising well-educated professionals was formed and they have done very good work.

The authority added that the sampling identified 90 per cent of the issues and except KE, no CEO of the Discos has challenged the inquiry report as it was based on the data of the PITC.

The members of the Nepra added that the authority has started working on over-billing complaints from 2021 and work has been going on for year and after completing the investigation, the responsibility will be determined.

Copyright Business Recorder, 2023