Tariff determination: Nepra declines to defer hearing of 'reconsideration request'

The National Electric Power Regulatory Authority (NEPRA) has declined to defer a hearing of the "reconsideration request" by the Ministry of Water and Power on tariff determination, said sources. Reliable sources said being a leading intervener to the tariff determination petitions of DISCOs under the multiyear regime, the All Pakistan Textile Mills Association (APTMA) has pleaded for dismissing the "reconsideration request" of the ministry of water and power without any further delay.
They said the APTMA has further requested the Authority to conduct a fresh public hearing on both the issues to prior year adjustment (PYA) and transmission and distribution (T&D) losses to ensure the participation of stakeholders for a review of the NEPRA methodology for the PYA and T&D loss targets determination.
According to the sources, the ministry's 'reconsideration request' was scheduled for Thursday when the ministry representative requested the Authority to postpone the hearing for third time. The NEPRA Chairman pointed out that under Section 31(4), under which the reconsideration request has been filed by the ministry, and stated that the government can file reconsideration request within fifteen days of the determination issued by NEPRA. The NEPRA is also bound to make a decision within fifteen days of the filing of reconsideration request.
"The reconsideration request was not filed within the stipulated time but NEPRA accommodated the government and condoned the delayed submission and scheduled a hearing on 14th June though not required under NEPRA rules," the Chairman was quoted as saying by the industry sources. He said the said hearing was cancelled upon the government's request and rescheduled for 21st June, which but was again fixed for 30th of June at the request of government's counsel. Resultantly, NEPRA has lost all the time that was available under law to complete process and issue determination on the government's reconsideration request.
The sources added that the NEPRA Chairman had concluded that indefinite delay in the matter is not possible under the provisions of law. He also informed the government representative that a customer in Multan has filed a petition before the high Court bench for immediate notification of NEPRA determined tariff. The Honorable Court has directed the NEPRA to complete the process within a week and send it to the government for notification within three days.
Interestingly, no one attended the hearing to represent the DISCOs. Meanwhile, the APTMA representative has told the Authority that the LESCO had not provided any information/comments on the Prior Year Adjustment (PYA) issue at any stage of the determination process while the FESCO in its petition admitted excess recovery of Rs 18 billion in 2014-15. Also, the government's reconsideration request did not include any working of PYA. Therefore, there is no ground for reconsideration.
On the issue of T&D losses, the APTMA representative apprised that LESCO and FESCO have increased the actual T&D Losses from 2013 to 2015 while NEPRA has determined T&D loss targets lower than the actual ones from the DISCOs but higher than the technical loss levels determined by the third parties engaged by the DISCOs.
The APTMA representative apprehended that the dream of improvement in DISCOs will never come true if NEPRA continued to determine such targets that provide cushion for theft of energy. Chairman agreed to APTMA point of view and justified the NEPRA determination by stating that it was for the first time technical study was conducted to determine losses. Therefore, NEPRA was little generous in setting targets above the technical loss levels determined by consultants engaged by DISCOs.
The APTMA sources said it was fulfilling its Corporate Social Responsibility through intervention to the DISCOs petition for multi-year tariff regime and playing a supportive role to assist NEPRA enabling it to come up with a practical verdict. The APTMA representative has highlighted the problems and inefficiencies of DISCOS before the NEPRA altogether, they added.