The National Electric Power Regulatory Authority (Nepra) has recommended up to 30 percent raise in power rates for consumers of Hesco, Qesco, Pesco and Mepco but has not touched the tariff schedules of Iesco, Lesco, Fesco and Gepco, sources in Nepra told Business Recorder here on Friday.
"We have recommended 15 to 30 percent increase in the tariff of four companies and dispatched the revised schedule to the Ministry of Water and Power, which may notify it after approval by Prime Minister Shaukat Aziz," they said.
When asked if the government would give subsidy to those power companies for whom 15, 25 and 30 percent raise has been recommended, sources said it was up to the government to give subsidy or increase tariff. The regulator had to determine tariff in the light of available statistics, they added.
The Ministry of Water and Power did not confirm that it had received tariff determinations from Nepra but said that the regulator would be asked to recalculate the tariff in the light of revised balance sheets.
However, an official in the Chief Engineering Advisor set-up, a subsidiary of Ministry of Water and Power, said that Nepra was being asked to recalculate tariff in the light of new debt-equity ratio as balance sheets of Discos, except Pesco and Mepco, have been converted into positive after Wapda transferred Rs 22 billion to companies' accounts.
The official said that Minister for Water and Power Liaquat Ali Jatoi would take up the matter with Prime Minister Shaukat Aziz, after which Nepra would be asked to revise tariff determinations in accordance with the revised balance sheets.
The official hinted that the matter could be referred to the Economic Co-ordination Committee (ECC) of the Cabinet for guidance as bridge financing was needed for Pesco and Mepco to convert their balance sheets into positive.
Asked if this process would not delay notification of new tariff, the official responded in the affirmative, but added that calculations would be made as per set model which does not need much time.