Pakistan to revise power rates monthly

ISLAMABAD, October 06 (Internews): Pakistan’s National Electric Power Regulatory Authority (Nepra) has decided to revise electricity tariff every month and asked all distribution companies of the Pakistan Electric Power Company, Wapda and Karachi Electric Supply Company to submit their power purchase costs by 15th of every month to ensure timely calculation of tariff.

The instructions have been conveyed under an amendment introduced in the Nepra Act introduced by the federal government.

Distribution companies are now required to submit their calculations in average sale rate due to variation in power purchase price billed by the Central Power Purchase Agency (CPPA) according to the prescribed transfer prices by 15th of each month.

“Such adjustment would be required along with the proposed adjustment in consumer-class rate. The Nepra will determine the revised tariff within five working days of receipt of information,” an official said.

The variation in average sale rate will be distributed among consumer groups to minimise cross subsidisation as far as possible. The adjustment would not apply to ‘lifeline consumers’, Nepra said.

It also notified that the KESC would be treated like a Wapda distribution company in tariff adjustment and national transmission.

As such, the KESC and other distribution companies would be charged at a fixed rate of Rs100.15 per kilowatt per month, besides a variable charge of Rs0.1233 kilowatt hour.

“NTDC shall treat KESC on a par with ex-Wapda distribution companies for the purpose of sale of power and shall charge KESC on the basis of similar mechanism as approved for Discos. For Power procurement from NTDC, KESC is directed to enter in an agreement with the NTDC for a definite period,” Nepra said.

A vertically-integrated utility, KESC has a separate generation and distribution licences and has been allowed a multi-year tariff for seven years applicable until November 29, 2012.

Under the existing system, NTDC was allowed to charge KESC on the basis of marginal cost plus use of system charge to meet its power shortfall. However, there is no written agreement between the NTDC and KESC for the quantity of power to be purchased by the utility.

Meanwhile, consumers of four Pepco distribution companies — Islamabad, Multan, Quetta and Hyderabad — will be charged at about 31 per cent higher rates in the current bills under the revised tariff.

The consumer tariff for four other distribution companies- Peshawar, Lahore, Faisalabad and Gujranwala — will remain unchanged for the time being because of stay orders issued by various courts.

Under standard procedures, distribution companies complete meter-reading during the first 10 days of each month and then send bills to consumers before the 20th of every month.

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