ISLAMABAD: National Electric Power Regulatory Authority (Nepra) is all set to hold a public hearing on Thursday (tomorrow) to rehear submissions of Pakistan Expatriate Co-Operative Society Limited against fifteen FPA and five QTA decisions on the directions of Nepra Appellate Tribunal.
According to Nepra, pursuant to the Appellate Tribunal’s order of February 13, 2024 in appeal number 154/ NT/ 2023 titled Expatiate Co-operative Housing Society Limited verses Federation of Pakistan, Nepra, and others, along with other connected cases, regarding Fuel Price Adjustment (FPA) and Quarterly Tariff Adjustment have been partially allowed, thereby setting aside the Authority’s order of March 9, 2021, June 3, 2022, July 7, 2022, August 12, 2022, September 12, 2022, October 14,022, December 16, 2022, January 11, 2023, February 16,2023, April 18, 2023.
May 25. 2023. June 12, 2023, July 19, 2023, August 8, 2023 and September 8, 2023 concerning FPA along with determinations of July 29, 20222, October 14, 2022, January 17, 2023, April 13, 2023 and July 7, 2023 regarding QTAs. The matter has been remanded back to the Authority for afresh hearing.
Nepra irked by Discos’ dismal performance
The Appellate Tribunal, in its short order stated that vide consolidated judgement (consolidated) appeals were partially allowed, impugned determinations of Fuel Charges Adjustment (FCA) and Quarterly Tariff Adjustment (QTA) of the Authority, only which were originally under challenge in writ petitions before Lahore High Court are set aside, and to the extent matter/s would be deemed pending before the Authority for its decision afresh, after affording meaningful right of audience to the appellants in accordance with law.
However, the impugned notifications issued by the Federal Government or the Authority, as the case may be, in pursuant to the determination/s shall remain in field. After a fresh decision by the Authority, the suitable modification/ rectification, if needed be, shall be made in the said notification/s of the Federal Government/ Authority. The remaining prayer in these appeals was declined.
In view of discussion and the case law referred from respondents’ side and also taking in to account the pragmatic approach, the Tribunal observed that provisions of Section 31 (7) (ii) & (iv) prescribing time frame for deciding QTA and FPA respectively are directory in nature and impugned determinations cannot be struck down for not pronouncing the same within time frame given in said section.
However, it was expected that all the departments concerned with determinations of FPA and QTA will make sincere and serious efforts for timely submission of information to the Authority and the Authority will also endeavour to make the positive efforts for its early determination. For that purpose, time frame by each of the actor in this process be specified, adhered to and in case of default, the defaulter be penalized with costs.
But the perusal of the impugned orders reveals a stay of negligence, non compliance and non-cooperation inter-se the state functionaries/ departments. It was hoped that these remarks would be taken serious note of only for improvement of the system and curtailing the timeframe, so far as possible to speedily deliver the determinations as per expectations of the consumers/ public at large and command of law. For that purpose, latest techniques, technologies and devises be employed.
As such the issue is answered in positive, expecting from the Authority not only to notice deviations of EMO but also to curb violations thereof with heavy hand as per law/ rules and if need be and permissible, also bring into notice of Ministry of Energy (Power Division) names of the violators for appropriate action and to support the Authority to achieve the very objects for which it has been established under Power Act.
Before parting with this judgment, the Appellate Tribunal observed that the FPA and QTA controversies would haunt it until and unless immediate and serious measures are not taken which may include: (i) strict compliance of the National Electricity Plan; (ii) improving energy mix, more reliance on indigenous resources for power generation; (iii) bringing immediate reforms in the power dispatch system by implementing an effective central SCADA system (with digital recording); and (iv) more regulatory vigilance and monitoring of EMO bringing transparency, and 3rd party audit of NPCC and CPPA- G for the last three years operations.
The Appellate Tribunal further stated that in terms of QTA determination, less efficient Discos (high percentage losses) should not keep on passing the burden to efficient ones which is an adding factor to circular debt ultimately to be borne by consumers.
The Registrar Nepra, Islamabad on receipt of this judgment, was to place it before Chairman Nepra to seek instructions and ensure commencement of the matter/s before the Authority preferably on March 14, 2024.
Copyright Business Recorder, 2024
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