Tariff reconsideration: ministry withdraws petitions against ''influential'' power companies

The Ministry of Water and Power has withdrawn tariff reconsideration petitions against ''influential'' private sector electricity companies, well-informed sources told Business Recorder. The sources said five power Distribution Companies (Discos) had raised serious objections against the higher tariffs determined by Nepra and approached the regulator for reconsideration of tariffs through the Ministry of Water and Power.
According to Nepra Power Acquisition Requests (PARs) filed by Faisalabad Electric Supply Company (Fesco), Hyderabad Electric Supply Company (Hesco) and Sukkur Electric Power Company (Sepco) for procurement of power from M/s Galaxy Textile Mills, Thatta Power (Pvt) Ltd, Shikarpur Power (Pvt) Ltd, Dadu Energy (Pvt) Ltd, and Omini Power (Pvt) Ltd were decided by the Authority on January 9, 2013 which was intimated to the government of Pakistan for notification in the official gazette as per Section 31(4) of the NEPRA Act, 1997.
Having considered the submissions of the Discos, comments of the stakeholders and keeping in view the benchmarks established by the Authority in the case of Independent Power Producers (IPPs), decision in the matter was issued on January 9, 2013. On March 8, 2013 Ministry of Water & Power, government of Pakistan filed a request to reconsider the decision of January 9, 2013 in respect of five companies with a request to approve the higher tariff as per proposal of Pepco.
The request was considered by the Authority and a hearing into the matter was also held on March 20, 2013 which was attended by the representative of Ministry of Water & Power, Ministry of Finance, Fesco, Sepco, Hesco, Central Power Purchasing Agency (CPPA) of NTDC and interveners, M/s IS.ZA.AD Associate.
During the pendency of reconsideration request of government of Pakistan, Ministry of Water & Power on September 16, 2013 requested for withdrawal of its plea dated March 8, 2013. Nepra considered the matter.
Nepra argues that since the requesting party does not want to continue with its request for reconsideration of decision of Nepra of January 9, 2013 therefore, the Authority dismissed as withdrawn the reconsideration request of March 8, 2013 filed by Ministry of Water & Power.