Under the multi-year tariff determination, the distribution companies (DISCOs) have sought the highest tariff for commercial consumers to adjust subsidies for domestic and agriculture consumers. The National Electric Power Authority (Nepra) has disagreed with the amounts of commercial tariff by the DISCOs and cut it down drastically. But still, this tariff can be reduced further provided that the ministry abstains from charging cross subsidy from commercial consumers for domestic and agriculture consumers, said the power sector experts.

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2015-16 MYT Determination by NEPRA for Commercial Consumers
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                                    LESCO                                    FESCO
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                                                   Rates                                   Rates
    Tariff Categories    Petition   Determined   Reduction     Petition   Determined   Reduction
                         Rs /kWh     Rs /kWh      Rs /kWh      Rs /kWh      Rs /kWh      Rs /kWh
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a   Upto 5Kw               17.42       14.05         -19%        16.91        13.20         -22%
b   5Kw & above            13.42       10.05         -25%        16.34        13.55         -17%
    TOU (Peak)             16.42       13.85         -16%        18.03        14.40         -20%
c   TOU (Off-peak)         10.92        7.25         -34%        11.27         7.35         -35%
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                                     MEPCO                                  IESCO
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                                                   Rates                                   Rates
    Tariff Categories    Petition   Determined   Reduction     Petition   Determined   Reduction
    Rs /kWh              Rs /kWh     Rs /kWh      Rs /kWh      Rs /kWh      Rs /kWh
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a   Upto 5Kw               19.77       14.00         -29%        17.50        14.25         -19%
b   5Kw & above            17.30       12.00         -31%        14.00        11.25         -20%
    TOU (Peak)             19.77       14.70         -26%        17.00        14.30         -16%
c   TOU (Off-peak)         12.97        7.30         -44%        11.50         7.10         -38%
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                                     GEPCO                                  PESCO
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                                                   Rates                                   Rates
    Tariff Categories    Petition   Determined   Reduction     Petition   Determined   Reduction
                         Rs /kWh     Rs /kWh      Rs /kWh      Rs /kWh      Rs /kWh      Rs /kWh
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a   Upto 5Kw               18.00       15.80         -12%        21.25        15.90         -25%
b   5Kw & above            15.00       11.80         -21%        16.77        11.35         -32%
    TOU (Peak)             18.25       15.80         -13%        21.25        15.90         -25%
c   TOU (Off-peak)         12.00        9.80         -18%        14.87        10.30         -31%
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                                     SEPCO                                    HESCO
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                                                   Rates                                   Rates
    Tariff Categories    Petition   Determined   Reduction     Petition   Determined   Reduction
                         Rs /kWh     Rs /kWh      Rs /kWh      Rs /kWh      Rs /kWh      Rs /kWh
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a   Upto 5Kw               27.61       18.90         -32%        19.76        14.80         -25%
b   5Kw & above            23.66       14.90         -37%        17.12        12.80         -25%
    TOU (Peak)             27.61       19.00         -31%        21.07        15.80         -25%
c   TOU (Off-peak)         18.14       13.05         -28%        13.43        10.00         -26%
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The table shows that the DISCOs have sought a minimum of Rs 16.42 and Rs 10.92 per unit for peak and off-peak hours in case of Lesco to a maximum of Rs 21.25 and Rs 14.87 per unit for peak and off-peak hours in case of PESCO under the multi-year tariff determination.
The stakeholders intervened to the petitions filed by the DISCOs and pleaded the NEPRA for a reduction in commercial tariff. Also, they have reminded the NEPRA its direction on elimination of cross subsidy. These stakeholders pointed out that the ministry was not implementing the direction and shifting the burden of subsidies to the domestic and agriculture consumers to the commercial ones.
Interestingly, both the commercial and domestic consumers are fed through combined feeders but the DISCOs charge them separately and burden the commercial tariff with subsidy to the domestic consumers. The power sector experts said as per the international practice, the tariff determination is based upon the cost of generation and transmission expenses. But this principle is not followed by the ministry of water and power while determining commercial tariff, which is discrimination and a hurdle in the growth of commercial activities in Pakistan.