The power regulator has stated that it cannot do anything to prevent the government’s planned hike in national uniform power rates of roughly 50%, to around Rs42-45 per unit in certain situations (this does not account for taxes or surcharges).
Trade and industrial bodies, mostly from Karachi, testified at a public hearing presided over by National Electric Power Regulatory Authority (Nepra) Chairman Tauseef H. Farooqui to voice their opposition to the proposed price increase, claiming it would force the closure of businesses, make exports uncompetitive, and result in the loss of jobs.
Mr. Farooqui, although acknowledging the difficulties faced by various consumer groups, stated that he “can only sympathise” and was unable to provide assistance at this time.
According to him, the government is still shelling out around Rs220 billion in subsidies to safeguard vulnerable populations, but the demands of the business community are “above our pay grade” and require lobbying at the political level.
According to the head of Nepra, the regulator had already approved the average national pricing hike of Rs7.91 per unit “based on ground realities,” therefore the public hearing was more of a formality.
He instead cautioned that the regulator’s average tariff was calculated using an outdated exchange rate of Rs200 per dollar, which has now risen to Rs225.
He explained that the regulator’s predictions were backward since they assumed that quarterly and monthly tariff adjustments would become negative as a result of tariff rebasing.
Curiously, the power division team was unable to confirm the average power rate after taxes, quarterly and monthly changes, and surcharges despite repeated inquiries from customers and Nepra members.
Officers handling Nepra tariff cases estimated the average rate at little around Rs40 per unit, while Nepra’s Sindh member Rafique Shaikh put the figure at around Rs44-45, lamenting that the electricity division employees were not clueless about such a crucial matter.
The federal government had filed a petition with Nepra asking that K-Electric and the power distribution companies formerly managed by Wapda have their consumer-end tariffs adjusted and that power consumers be notified of a uniform schedule of tariffs that takes into account targeted subsidies and rationalises tariffs between distribution companies.
Mahnur is MS(development Studies)Student at NUST University, completed BS Hons in Eng Literature. Content Writer, Policy analyst, Climate Change specialist, Teacher, HR Recruiter.
