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Multi-Year Tariff (MYT) of power companies is fast approaching to an end and National Electric Power Regulatory Authority (Nepra) has asked the companies including K-Electric to file petitions for formulation of new MYT. Chairman Nepra Brigadier Tariq Saddozai (Retd) during his recent visit to Karachi informed that the MYT approved by the authority in 2001 will expire in June-2016. He asked all power utilities involved in generation, distribution and transmission to submit their data and proposals separately for the enforcement of the next MYT.
There are various flaws in the current MYT mechanism; however, the regulatory body would remove them in its new MYT structure, he said. "We have also asked KE to file separate tariff petitions for generation, transmission and distribution before the expiry date comes to an end," he said. "Nepra's new policy to separate generation, distribution and transmission tariffs is right step towards deregulation of electricity. The move would help ending the monopoly of big power distributors in the country and give advantage for efficient and use of cheap electricity," Ahmad Kamal of ENERSAVE (an energy saving company) told Business Recorder.
Experts were of the view that this method of separate tariff of three portions of energy vis-à-vis generation, transmission and distribution would not benefit the consumers. They feared that Nepra would approve the proposed tariff of power companies.

Copyright Business Recorder, 2015

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