NEPRA refuses to remove fixed electricity charges for industries

LAHORE: National Electric Power Regulatory Authority (NEPRA) chairman Tauseef H. Farooqi has refused to lift maximum demand indicator (MDI) fixed charges, insisting the industrialists had to pay fixed electricity charges as they were assured quantum of power allocation.

Speaking at the Lahore Chamber of Commerce and Industry (LCCI) on Saturday, NEPRA chief said the current account deficit was to be met by charging according to the allocation.

“The rate of energy is to be determined on the cost of production, which is already very high because we depend on imported fuels. Due to the devaluation of currency, people have to bear expensive electricity,” Farooqui said.

He also negated cold storages operate seasonally, saying the seasonal businesses could disconnect their electricity connections and reconnect when they needed electricity.

“The cold storages are not a seasonal business, but they work throughout the year and met the need of vegetables, fruits and perishable items of the country.”

The rate at which discos are charging MDI charges, they are paying 10 percent more to Central Power Purchasing Agency Guarantee limited (CPPA-G), according to NEPRA chief. “This is a very low price that they are charging.”

He informed that NEPRA had allowed the seasonal industry to disconnect and reconnect four times in a year without any charges.

“NEPRA has a hearing next week on MDI. By joining it, businessmen can let us know about their concerns.”

Farooqui stated that NEPRA had decided that the rate of net metering would remain at Rs19.90.

NEPRA has issued licenses for 65,000 megawatts (MW) power supply while the total requirement is 23,000 MW across the country, according to the official.

“We currently have an installed capacity of 43,000 MW. He said that 65% of electricity generation is done on imported fuels.”

He emphasised that NEPRA’s job was to provide affordable, reliable, and sustainable

energy.

NEPRA has four functions including licensing, tariff, monitoring and enforcement, and consumer affairs department.

Earlier, LCCI had demanded removal of MDI that imposes fixed charges for electricity, saying it was pushing the industries towards closure.