The federal government has violated NEPRA Act by delaying in issuance of tariff notification for distribution companies, causing concerns amongst consumers especially the industrial consumers for their inability to take a decision on fresh investments.
The decision of periodic quarterly adjustments was sent to Secretary Ministry of Energy (Power Division) vide No. NEPRA/R/TRF-100/DISCOs/10252-10254 by NEPRA but so far no tariff notification has been issued by Government of Pakistan. The NEPRA Act stipulates that "Notification of the Authority's approved tariff, rates, charges and other terms and conditions for the supply of electric power services by generation, transmission and distribution companies shall be made by the Federal Government in the official Gazette, within fifteen days of intimation of the final tariff by the Authority."
The fifteen days' time limit has expired and the notification has not been issued by the Secretary Ministry of Energy (Power Division) though the Minister of Energy in his media statements is quoting excerpts of the tariff to be notified, which is causing concern amongst the consumers and specially the industry because the zero rated regime for industrial consumers has been abolished.
It may be noted that media reports suggests that Economic Coordination Committee of the cabinet in its meeting held on June 26, 2019 with PM Finance Advisor, Dr Abdul Hafeez Sheikh in the chair decided to discontinue Industrial Support Package of Rs 3 per unit during off-peak hours (20 hours in total) effective from July 01, 2019.
The industry and chambers have shown their dismay on this situation because the tariff hike will play havoc with plight of the industry. The revival of the fledging industrial sector of the country and its sustainability is already marred. The industry is in a quandary; its competitiveness with the regional players has also fizzled out and considers this as a step backwards for any ease of doing business. This delay further aggravates the ongoing economic crisis for the industry in Pakistan.
DISCOs filed requests of periodic adjustments of Power Purchase Price (PPP) for the quarters July to September 2018 & October to December 2018 in 11/2018 and 02/2019 respectively but NEPRA defaulted on its own time frame in deciding the requests.
It is laid down in NEPRA (Tariff Standards & Procedure) Rules, 1998 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 the aggregate period of four months. Also, the reasons for such extension in time shall be recorded in writing.
The above requests of both the quarters were clubbed and the public hearing was conducted on 13/03/2019 at NEPRA Tower, Islamabad. The decision has been announced on 14/06/2019. The determination for the quarter July to September 2018 has been issued after a lapse of more than five months and for the quarter October to December 2018 more than four months. No reasons for delay have been recorded in the decision. NEPRA flouted its own time frame. The representatives of industry and chambers are clamouring to take cognizance of this violation and unlawful practice.
The non-issuance of notification by the Federal Government within the stipulated period means indulgence in an unlawful practice and who is going to take notice of this.
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