The National Electric Power Regulatory Authority (NEPRA) is surprised at the request from distribution companies (Discos) for an additional fuel cost adjustment (FCA) of Rs7.13 per unit.
The power regulator decided to hold off on ruling on the FCA request until it completes a thorough investigation into the matter.
This announcement came during a public hearing regarding a petition from the Central Power Purchasing Agency (CPPA), representing Discos, which aims to collect an additional Rs 57 billion from consumers for electricity used in January.
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NEPRA’s Chairman, Waseem Mukhtar, questioned the necessity for such a significant tariff hike, especially since there have been no changes in fuel prices or exchange rates.
A member of NEPRA highlighted that nearly half of the Rs 57 billion sought was due to the national grid’s failure to maintain efficient operations along the north-south transmission corridor.
This inefficiency has led to consumers enduring lengthy power outages, with average load-shedding lasting about eight hours, and some areas experiencing up to a two-hour power deficit.
The National Transmission and Despatch Company (NTDC) reported a decline in electricity consumption by 12-13% in January compared to the previous year, attributing this decrease to higher fuel costs and grid instability.
However, NEPRA criticised this explanation, pointing out that the demand issues in the north could have been mitigated by improving the power supply in the south, where consumers faced 10-12 hours of load shedding.
Chairman Mukhtar was particularly surprised by the substantial FCA request and noted the absence of the secretary of the Power Division at the hearing.
He emphasized that NEPRA could not approve the power companies’ charges without scrutiny and would investigate the issue in detail under section 27 of the NEPRA Act.
Mukhtar stressed the importance of not treating NEPRA as merely a “rubber stamp” and highlighted the need for accountability within the power sector.
The regulator has voiced serious concerns over the proposed burden by Discos, attributing it to systemic flaws.
Discrepancies in load-shedding patterns across regions have also raised doubts about the legitimacy of the proposed adjustments.
NEPRA & DISCOS are hand in glove with each other. They are fleecing and looting the public with no end to it, because they are not affected and enjoying millions of free units.. And Prime minister office is just signing summary of increase.