Nepra maintains commercial tariff for cold storages despite dissent

The National Electric Power Regulatory Authority (Nepra) has upheld its decision to classify cold storage facilities under the commercial tariff category, directing all electricity distribution companies (DISCOs), including K-Electric, to charge these facilities at commercial rates as per the tariff terms and conditions notified on July 25, 2022. The decision was made despite dissent from two members of the authority.

Member (Technical) and Member (Law) submitted dissenting notes, expressing disagreement with the majority decision. Member (Technical) opposed the uniform commercial tariff classification, while Member (Law) objected to the categorization of cold storage facilities under the commercial tariff altogether.

Nepra clarified that cold storage facilities had never been formally categorized under the industrial tariff. The issue gained attention when Quetta Electric Supply Company (QESCO) sought clarification on the matter. 

In March 2021, Nepra stated that the industrial tariff could apply only if a cold storage facility engaged in processing, value addition, or manufacturing. Facilities used solely for storage and preservation purposes were to be charged the commercial tariff.

In June 2022, the authority formalized the decision, placing cold storage facilities in the commercial tariff category alongside shops, hotels, private hospitals, and other service-oriented establishments. 

This move was later notified by the federal government through SRO 1168(I)/2022.

Subsequently, cold storage operators raised concerns, arguing that the commercial tariff increased their operational costs and sought a review of the decision. 

Nepra held a public hearing on June 6, 2023, where stakeholders, including DISCOs and the All Pakistan Cold Storage Association, presented their views.

Challenges to the tariff categorization also reached the Lahore High Court (LHC), which ruled that Nepra must not change tariff classifications without giving affected consumers a chance to be heard. This decision was later appealed before the Supreme Court. The apex court directed Nepra to decide the matter independently, without being influenced by prior judgments.