ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has called on the government to rectify power generation contracts to provide substantial relief amidst public outcry over a significant tariff hike of up to Rs7.12 per unit.
During a public hearing, Nepra announced an investigation into last month’s overbilling by distribution companies due to changes in the meter reading mechanism to ‘pro rata’ adjustment. Representatives from the power division claimed that the average tariff for the current fiscal year would be lower than the previous year due to fewer quarterly adjustments and monthly fuel cost changes.
The government has provided a Rs50bn subsidy for three months to residential consumers using up to 200 units per month, although this relief has yet to be officially notified. The hearing, presided over by Nepra Chairman Waseem Mukhtar, attracted strong criticism from various consumer categories, including the export sector, which claimed uncompetitive tariffs.
Consumers criticized Nepra for allegedly acting as a rubber stamp for government tariff hikes and failing to address inefficiencies in the power sector. Nepra’s tariff member, Mathar Niaz Rana, emphasized the need to examine the efficiency of independent power producers and generation plants. Nepra Chairman Mukhtar highlighted concerns over inefficiencies in distribution companies and called for drastic reforms to restore public confidence.
Nepra’s member for consumer affairs, Rafique A. Shaikh, announced an investigation into overbilling complaints, noting previous adjustments for overbilled consumers. The Nepra chairman countered the perception that the regulator was a rubber stamp, stating that Nepra had reduced the government’s demanded tariff increase from Rs8.33 to Rs5.72 per unit. The final tariff revision decision is expected soon.
Story by Khaleeq Kiani
