The National Electric Power Regulatory Authority (Nepra) has violated its own rules while considering the requests of quarterly adjustments of distribution companies (Discos) on account of variation in Power Purchase Price (PPP) for the quarter July to September 2018.
According to the power sector experts, the Nepra is not interested that any meaningful intervention is made. They are of the view that without focused and meaningful intervention, it is not possible for any Regulator to reach the right conclusion, which are both supportive of Discos operations and consumer's interest.
It may be noted that the petitions were filed well in time by Discos but Nepra failed to conduct proceedings and issue the requisite determination as laid down in Nepra (Tariff Standards & Procedure) Rules, 1998, which state that the Authority shall decide a petition within four months of the date of admission of the petition provided that the Authority may, only for causes beyond its control including, without limitation, the failure by any person to comply with the provisions of these rules or the orders and directions of the Authority, extend the aforesaid four months period by a further period of one month.
The Nepra Rules further stipulate that it shall not extend the time for its final determination in proceedings beyond an aggregate period of four months. Also, the reasons for such extension in time shall be recorded in writing.
According to the record unearthed by this scribe, the Discos submitted their petitions well in time but Nepra defaulted on its own time frame. Thereafter, Nepra advertised public hearing after a delay of about three months and fixed 13/03/2019 for the public hearing. The advertisement, however, did not state any reason for the belated process by the Regulator. Similarly, the petitions relating to adjustments of Discos on account of variation in power purchase price for quarter Oct to Dec 2018 were submitted to Nepra.
However, in a surprise move Nepra clubbed both the quarterly adjustments for Jul to Sep 2018 & Oct to Dec 2018 and the consolidated advertisement appeared on 02/03/2019 while the date of hearing was fixed on 13/03/2019. The public hearing on the issue was conducted on 13/03/2019 at Nepra Tower, Islamabad but no determination/decision has been issued by the Regulator so far in flagrant violation of its own schedule. Representative of industry and chambers have shown their dismay and are clamouring for the quarters concerned to take cognizance of this violation and take action against Nepra because it is almost five months for the quarter Jul to Sep 2018 and about more than four months for the quarter Oct to Dec 2018 as now both the adjustments are bound to be issued together, it is feared that it all would generate excessive burden for the consumers. The industry considers this as a step backwards for any ease of doing business.
It may be noted further that the worst part of the exercise is that Nepra took four to five months in the proceedings and gave just seven working days to the stakeholders to submit written/oral comments/objections on the petitions of Discos. The advertisement appeared on 02/03/2019, which was Saturday (a holiday). 3rd March was Sunday. 9th & 10th Mar were again Saturday & Sunday (holidays) which means that just seven days working time is being given to stakeholders to offer comments/objections on 20 petitions of 10 Discos. It is against all norms of justice and fair play and indicative of Nepra's bias and a question mark on its impartiality as a Regulator, specially, when the process affords very little time to stakeholders to participate meaningfully in the proceedings.
Further study reveals that the petitions of Discos uploaded on the Nepra website provide no justification for escalation of O&M charges, UoSC and CPP etc. IESCO in its 1st quarter from Jul to Sep 2018 has demanded Rs. 327 millions for recruitment and retirement for FY 2009-13 but furnished no justification for this amount. There is no data in existence on the website for Pesco in its adjustment sought for Jul to Sep 2018. Simply the covering memo has been posted. Qesco has just one page data and Lesco only two pages with no details. In the absence of this material, no stakeholder can contribute meaningfully in the proceedings.
Similarly, for the quarter Oct to Dec 2018 LESCO petition exhibits just two pages data of Lesco, one page of Mepco and one page data of QESCO. Stakeholders have been kept in dark intentionally because it is apprehended that the tariff is likely to enhance by another 80 paisa or so in addition to increase due to IMF pressure.
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