Restrictions on wheeling system: PHC seeks responses from Pedo, Nepra and others

PESHAWAR: The Peshawar High Court (PHC) on Wednesday sought responses from the Pakhtunkhwa Energy Development Organisation (Pedo), the federal government, the National Electric Power Regulatory Authority (Nepra), and other relevant authorities on a petition challenging restrictions on the wheeling system for low-cost electricity transmission in Khyber Pakhtunkhwa.

A two-member bench comprising Justice Sahibzada Asadullah and Justice Wiqar Ahmad heard the petition filed by the Khyber Pakhtunkhwa Textile Mills Association.

During the hearing, the petitioners’ counsel, Shumail Ahmad Butt, informed the court that Khyber Pakhtunkhwa was the leading producer of electricity in Pakistan, particularly low-cost hydropower, which was generated at a cost of just Rs2-3 per unit. However, this electricity was being sold to mills at exorbitant rates of Rs60-70 per unit, he added.

The counsel argued that the federal government had initially introduced a wheeling system to facilitate the transmission of electricity, allowing industries to receive power at lower costs.

Under this system, hydropower units could transmit electricity directly to their affiliated industrial units, with payments made to both federal and provincial governments for transmission usage. However, the federal government later directed all distribution companies (DISCOs) to halt the implementation of the wheeling system, citing potential operational issues.

Highlighting the consequences of this policy, the counsel stated that the textile sector, already under significant pressure, has been further impacted by these restrictions. He argued that the wheeling system would enable industrial units to access affordable electricity, which would, in turn, resolve multiple issues, provide employment opportunities, and reduce inflation.