NEPRA defers decision on another electricity tariff hike

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has decided to evaluate the performance of the power distribution companies following another request for hiking the electricity tariff in terms of fuel cost adjustment (FCA), ARY News reported on Wednesday.

The NEPRA conducted a hearing of the Central Power Purchasing Agency’s (CPPA) plea seeking another hike in electricity tariff by Rs2.07 per unit. During the hearing, the CPPA restricted its plea to Rs1.57 per unit, a declaration issued by the authority’s spokesperson said.

The authority issued directives to the CPPA to submit performance report of the coal-powered power plants. The NEPRA questioned why power production cost was hiked despite a reduction in coal prices.

It added that expensive power plants were being run for many years. The authority also sought a reply on not enhancing the capacity of power grids including Gatti power grid.

The declaration stated that the NEPRA has only listened to the stance of the stakeholders but it did not make any decision. A detailed verdict will be issued after the scrutiny of the data.

The authority expressed dissatisfaction over the performance of the distribution companies (DISCOs) and decided to conduct a hearing to perform the evaluation.

The DISCOs have been directed to submit their performance reports in 15 days. The NEPRA directed the power distribution companies to expedite efforts for curbing electricity theft and line losses.

The authority announced to conduct another hearing after three weeks to evaluate the performance of the DISCOs.

Earlier in the month, the National Electric Power Regulatory Authority (NEPRA) launched an investigation into the issue of over-billing on faulty and slow-speed electricity meters.

According to NEPRA officials, Lahore Electric Supply Company (LESCO) violated the law by allegedly issuing average bills to consumers.

NEPRA’s intervention follows reports of average charges being applied to technically sluggish meters, a violation of standard procedures.

LESCO customers, in some instances, have reportedly been billed for periods extending from six months up to a year, raising concerns over billing practices.

In response to numerous complaints, NEPRA has issued a show-cause notice to LESCO, demanding explanations for the alleged irregularities within 15 days.

Authorities have stated that the power supply company have to pay a fine of Rs 200 millions, if irregularities are found.