New power tariff regime on the cards

ISLAMABAD: National Electricity Policy and Plan to be carved out by the government once the proposed changes to Nepra Act get approved by the parliament will bring new tariff regime. 

The draft proposed by ministries of water and power and finance has been vetted by the Law Division which will today or tomorrow be placed in the parliament for approval.

If the parliament accords approval to the proposed draft, then Nepra will turn into a toothless organisation which will have no say in regulating the power sector any more. Under the proposed draft of which copy is available with The News, National Electricity Policy and Plan that is to be carved out by the government will regulate the regulator - Nepra. National Electricity Policy means the government will have a say in determining the tariff not the Nepra.

The proposed draft suggests revising appointment and term of chairman and members of the Authority. Section 3(5) has been revised to state that no chairman or member shall be appointed or continue to serve office if he has attained the age of 62. This bar on age has been revised downwards from 65 years.

Upon enactment of the amended Nepra Act, all current serving members and the chairman of Nepra will cease to be eligible to hold office, having passed the age of 62. The amendment concerned, particularly the provision applying to the serving Authority, highlights the targeted application of the amendment. It suggests that the provision is motivated by the underlying political displeasure being accorded to the current members and chairman. 

The National Electricity Policy shall provide the tariff structure based on recovery of 100 percent cost of electricity generation including the passing of all inefficiencies, line losses, theft and failure in recovery of billed amount to end consumers. The government deems this kind of tariff structure will end the emergence of circular debt once for all.