The National Electric Power Regulatory Authority (Nepra) has entered the final phase of allowing substantial raise in discos' power tariffs for the 2009-10 fiscal year despite resistance by consumers.
The Gujranwala Electric Power Company (Gepco) has demanded an average increase in tariff of 12 percent, Multan Electric Power Company (Mepco) 10 percent, Peshawar Electric Supply Company (Pesco) 8 percent, Islamabad Electric Supply Company (Iesco) 12 percent, Lahore Electric Supply Company (Lesco) 10 percent, Quetta Electric Supply Company (Qesco) 11 percent, and Hyderabad Electric Supply Company (Hesco) 19 percent.
The new tariff is expected to be implemented from July 2009 as per agreement already signed between the GoP and the International Monetary Fund (IMF). The representatives of public, provincial governments and trade bodies, who participated in the hearing, opposed any increase in power tariff as it would increase their input cost.
The tariff determination for Faisalabad Electric Supply Company Ltd (Fesco) and Karachi Electric Supply Company (KESC) is to be determined under a separate multi-year (five) tariff mechanism that is already in place. Nepra Chairman Khalid Saeed and members took strong exception to continued high transmission and distribution losses and non-recovery of the dues by the discos.
The regulator directed the discos to reduce losses, reduce O&M costs, and improve overall efficiency to provide relief to consumers. The discos were directed to implement effective recovery mechanism for outstanding dues for both government and private consumers.
The Authority told the discos that while they could not influence the power generation mix or the power purchase price (PPP), they could, however, reduce the sale price of electricity to the end-consumers by improving their performance.
The Authority also reviewed the progress of Time of Use (ToU) metering, and directed the discos to complete the installation of ToU meters in a timely manner as already directed through tariff determinations. The introduction of ToU meters would be an effective tool for demand side management and would help the consumers to avail of much cheaper off-peak tariff rates in addition to reducing the peak demand for discos, it said.