ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has yet to schedule a hearing on a Motion for Leave for Review (MLR) filed by a Karachi-based citizen, Arif Bilwani, regarding the application of tariff categories for cold storage facilities.
The delay comes despite NEPRA’s Appellate Tribunal directing the authority to rehear the matter and the MLR being accepted over two months ago.
Bilwani filed the MLR on December 30, 2024, under Rule 3(2) of the NEPRA (Review Procedure) Regulations, 2009, challenging NEPRA’s decision that categorised cold storage units under the commercial tariff structure. The Authority accepted the MLR through a letter dated February 13, 2025, but has since made no progress on scheduling a hearing.
In a letter to NEPRA’s Registrar, Bilwani expressed frustration, stating: “It is difficult to comprehend the continued delay in scheduling the hearing, despite more than four months having passed since the acceptance of the MLR.” He also pointed out that federal institutions, including the Ministry of Industries & Production, the Federal Cabinet, and the Economic Coordination Committee (ECC), have already recognised cold storage as an industrial activity.
Supporting documentation, including official approvals and clarifications, was submitted to NEPRA on March 5, 2025. Yet, no response or further action has followed.
Bilwani criticised NEPRA’s original decision, which was passed through a casting vote by the Chair despite dissenting notes from two members, including the Member Legal. “This approach raises significant concerns about the fairness and rationale of the decision,” he said.
He cited Section 5(3) of the NEPRA Act, questioning whether reasonable notice was served to all members, particularly the Member Tariff, who had been involved in earlier deliberations but was absent from the final decision-making meeting.
Bilwani, who has regularly participated in NEPRA’s public hearings, argued that the Authority’s decision fails to understand the nature of modern cold storage operations. “Modern cold storages, which use controlled temperature and humidity systems, provide critical value-added services to industrial and commercial sectors,” he wrote.
He added that these services are essential for food and health security and export facilitation.
He further maintained that dissenting opinions from Member Legal and Member Technical had echoed his concerns and were grounded in legal, technical, and global best practices. He criticised the Authority for dismissing these views in favour of circular debt concerns and subsidy arguments.
“The Authority’s reasoning in paragraphs 10–12 of its decision reflects a narrow understanding of value addition,” Bilwani argued, adding that the classification of cold storage as simply serving retail businesses ignores the sector’s complexity and industrial role.
He emphasised that modern facilities use advanced electromechanical systems to preserve the nutritional and chemical properties of perishable goods, extend shelf life, and support pharmaceutical manufacturing. He warned that maintaining the commercial classification would lead to higher electricity costs, negatively impacting exporters and industries reliant on cold storage, including the pharmaceutical sector.
“The Pharma sector cannot take the risk of any hurdle, shortage, or scarcity of these critical active ingredients,” Bilwani wrote. “They always keep them readily available in bulk by availing the aforesaid facility.”
With mounting financial losses and industry disruption, Bilwani urged NEPRA to expedite the hearing process without further delay.
