ISLAMABAD: The International Monetary Fund (IMF) has lauded the role of China-Pakistan Economic Pakistan (CPEC) in controlling energy shortages and requested the government to relinquish its role on notification of electricity rates.
The electricity rates set by the National Electric Power Regulatory Authority (Nepra) and the IMF believes the relinquishing of notifying electricity rates by the government would help curb repeated coming back of circular debt, reports Dawn.
Sources aware of the development shared that a major share of the circular debt has been accumulating due to the time utilized in determining tariff by Nepra on petitions submitted by power companies and its back and forth exchange with the government for notification.
Moreover, these sources shared the IMF delegation asked authorities to undertake further revisions to the Nepra Act to ensure automatic notification of quarterly, annual and multi-year tariffs ascertained by the regulator on the lines of monthly fuel price adjustment announced directly by Nepra.
Due to delays in notification of the base tariff, in some cases has taken over a year or two to be finalized because of litigations by power distribution companies with the support of the Power Division.
Also, sources privy to the development told the IMF delegation had held three sessions with the Power Division authorities alongside deliberating about these challenges with the finance ministry.
The IMF delegation on Thursday (today) will have a meeting with the chairman of Nepra, its members and top officials at its headquarters to get an independent view of it on power sector challenges and problems.