Nepra reserves decision on additional charges of Rs5.62/unit

ISLAMABAD: Following a public hearing on the Discos’ petition, the National Electric Power Regulatory Authority (Nepra) has hinted at allowing them to collect an additional Rs5.62 per unit, potentially imposing a financial burden of Rs41.7 billion in February 2024 bills.

Nepra Chairman Waseem Mukhtar led the proceedings, with members Rafique Ahmad Shaikh, Engr Maqsood Anwar Khan and Mathar Niaz Rana in attendance. The power regulator has reserved its decision and the final verdict will be issued in the coming days after further data calculation. This hearing was regarding the Fuel Charges Adjustment (FCA) for December 2023.

The regulator noted significant impediments faced by transmission lines from South to North have posed a considerable challenge, as the power evacuation is restricted to prevent system instability and breakdowns. This longstanding issue persists, imposing a burden of multi-billion rupees on power consumers who bear the cost of consuming expensive power.

The National Transmission and Despatch Company (NTDC) bears the responsibility of addressing this major bottleneck; however, progress on this front has been notably slow. NTDC cites Nepra’s refusal, withholding permission to collect over Rs40 billion rupees, as a hindrance. NTDC is urging Nepra to authorise the collection of this amount from power consumers.

Nepra, in response, has withheld the funds, attributing it to NTDC’s inefficiencies and project execution failures. This has resulted in an additional financial burden on loyal power consumers, reflected in their hefty power bills. NTDC contends that Nepra has consistently deducted the amount from their claims since September 2019, hindering the recovery of funds.

In December 2023, power generation from nuclear plants experienced a reduction due to refueling activities. Typically, hydel generation also decreases in winter. A member of the authority raised the question as to why maintenance and overhauling of other power plants are not conducted in different months.

The petitioner pointed out that there are currently 104 operational power generation units, 23 belonging to Wapda. Intriguingly, the absence of a winter package and the elevated cost of power have led to a substantial reduction in industrial electricity consumption. This development raises inquiries about the scheduling of maintenance activities for power plants and prompts a closer examination of the factors influencing industrial electricity consumption, including the absence of a winter package and the associated increase in power costs.

In response to the overcharging billing report, the authority stated that explanations have been sought from the DISCOs, and their responses have been received. Subsequently, showcase notices will be issued to them.

Additionally, an official clarified that the replacement of faulty meters by electricity companies is scheduled to be completed by February 2024. This action is presumably being taken to address concerns related to inaccurate meter readings and ensure the accuracy of billing for consumers.