Power Companies Demand Rs46.99 Billion from Consumers

Power Companies

Power companies in Pakistan are seeking to collect a substantial sum of Rs46.99 billion from consumers, a move that has sparked widespread concern and debate.

This demand is currently under review at a hearing conducted by the National Electric Power Regulatory Authority (NEPRA), with the outcome set to affect electricity consumers across the country.

The hearing, led by NEPRA Chairman Wasim Akhtar, centers on the power companies’ request for Rs46.99 billion, which they have filed for the last quarter of the previous financial year.

The companies argue that this substantial amount is necessary to cover increased capacity charges, which they claim have risen due to a notable decline in electricity sales. During the hearing, members of NEPRA raised critical questions about the justification for this demand.

The member for Khyber Pakhtunkhwa challenged the power companies to provide detailed information on the amount of electricity they have drawn and the quotas allocated to them. This line of questioning reflects growing concerns about transparency and accountability in the energy sector.

Rafique Sheikh, the member for Sindh, voiced strong objections to the distribution companies, demanding an explanation for the increased capacity charges.

He criticized the companies for their lack of transparency and called for concrete data to support their claims rather than vague statements about declining electricity sales.

The frustration expressed by Sheikh highlighted the need for greater clarity in how power companies manage their operations and the impact of their decisions on consumers.

Officials provided insights into the reasons behind the decrease in electricity sales, attributing it primarily to the growing trend of solarization and the refusal of the Pakistan Electric Power Company (PESCO) and the Gujranwala Electric Power Company (GEPCO) to implement net metering.

This refusal has prevented consumers from generating their electricity and selling excess power back to the grid, a practice that could alleviate some of the burden on the national power supply.

The refusal to implement net metering became a focal point of the hearing, with the member for Sindh expressing anger over the issue.

He questioned who was responsible for preventing the installation of net metering systems and demanded accountability. In response, PESCO officials clarified that the decision was made by the PESCO board, not by the company’s management.

However, this explanation did not satisfy the member for Sindh, who challenged the authority of the PESCO board to override NEPRA rules. He questioned the qualifications of the board’s chairman and demanded to know the rationale behind denying consumers access to net metering.

This exchange highlighted the tensions between regulatory authorities and power companies, particularly regarding decisions that directly impact consumers.

NEPRA officials acknowledged that the issue of net metering is particularly acute in PESCO’s jurisdiction, underscoring the challenges in expanding consumer access to this technology.

As the hearing continues, the debate over the Rs46.99 billion demand and the broader issues of transparency, accountability, and consumer rights in the energy sector are likely to intensify.

The final decision by NEPRA will have far-reaching implications, not only for the power companies involved but also for millions of electricity consumers across Pakistan.