NEPRA
ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has taken a firm stance against the power distribution companies (Discos) following their inadequate response to widespread overbilling of consumers in July and August of the previous year. During a public hearing led by NEPRA Chairman Waseem Mukhtar, concerns were raised about Discos seeking over Rs85 billion in recovery from consumers over three months, primarily under the category of capacity charges.
The hearing unveiled a significant backlog of around 1,100MW in capacity from pending applications for new connections, adding to the regulatory dismay. NEPRA members expressed dissatisfaction with the management of power companies, particularly the Chief Executive of the Central Power Purchasing Agency (CPPA), citing casual behavior and poor preparedness in responding to inquiries during the hearing.
Discussions during the hearing were centered on the Discos’ claim of an additional Rs85 billion for the second quarter of the current fiscal year, intending to be charged to consumers nationwide at approximately Rs4.5 per unit for three months. NEPRA’s case officers reported a 12-13% decline in electricity consumption, prompting questions about the reasons behind this decline, especially in areas beyond the industrial sector.
NEPRA members voiced displeasure over the absence of key figures, including the CEO of CPPA, during the public hearing. Concerns were raised about load-shedding occurring across the country, and consumers bearing the brunt of capacity payments, while power companies showed reluctance in extending new connections.
The regulatory body directed power company CEOs to personally attend the next hearing, emphasizing the need for thorough preparation in the absence of a CEO. NEPRA expressed dissatisfaction with the distribution companies’ responses over excessive billing, as revealed in an investigation report, leading to the decision to issue formal show-cause notices within days.
The ongoing saga also involves tariff adjustments sought by Discos, including a quarterly adjustment for the Oct to Dec 2023 period and a pending decision on a monthly fuel cost increase for February. NEPRA remains vigilant in addressing consumer concerns and ensuring transparency in the power sector, with the regulator committed to concluding the investigation and decision-making process within a month.
