Government seeks NEPRA’s approval on power tariff hike

ISLAMABAD: The federal government on Monday seeks for consent of the power regulator , the National Electric Power Regulatory Authority (Nepra) to standardize power tariff hike by Rs 1.27 per unit in order to put into operation the homogeneous tariff across Pakistan.

According to the representative of the Ministry of Energy (Power Division), it is stated that during a public hearing that the government had increased the average power tariff by almost Rs 1.27 per unit. At present, uniform power tariff was Rs 11.71 per unit, which is expected to be augmented to Rs 12.98 per unit.

However, the inquiry was raised over the authority of two members carrying out public hearing, due to limited quorum of the authority. At present, the power regulator has only two members, and the third member is yet to be appointed.

During the hearing, Nepra Member Punjab Saifullah Chattha acknowledged that minimum three members are necessary to make a decision related to any power distribution companies.

The hearing was documented and

the pronouncement of standardized power tariff will only be confirmed once the third member is appointed and joins the office. This was the main reason, due to which members of Nepra set aside the judgment, which would be proclaimed after the third member joins the authority.

Zargham Eshaq Khan, the Power Division Joint Secretary informed that the power regulator had suggested an increase in power tariff of almost Rs 3.8 per unit for power distribution companies, but the federal government had made a standard increase in power tariff of Rs 1.27 per unit.

He also added that, the government would give subsidy for domestic consumers, which are consuming less than 300 units per month. Also, the government is initiating some targets for power distribution companies in order to fetch enhancement and competence in the system that can add up Rs 140 billion in revenue, as it will be difficult for the government to receive Rs 80 billion in the account of net hydel profit from consumers.

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