DISCOs seek 10 to 19pc hike in power tariff

[Naveed Yaseen]

ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) on Friday completed the process of public hearings of the Ex-WAPDA Distribution Companies namely Gujranwala Electric Power Company Ltd (GEPCO), Multan Electric Power Company Ltd (MEPCO), Peshawar Electric Supply Company Ltd (PESCO), Islamabad Electric Supply Company Ltd (IESCO), Lahore Electric Supply Company Ltd (LESCO), Quetta Electric Supply Company Ltd (QESCO) and Hyderabad Electric Supply Company Ltd (HESCO) for determination of consumer-end tariff for FY 2009-10.

The tariff determination for Faislabad Electric Supply Company Ltd (FESCO) and the KESC is determined under a separate multi-year tariff given earlier. During the hearings, all DISCOs presented their case and asked for an increase in consumer-end tariff.

GEPCO demanded average 12pc, MEPCO 10pc, PESCO 8pc, IESCO 12pc, LESCO 10pc, QESCO 11pc and HESCO demanded average 19pc increase in consumer-end tariff over the tariff determined by NEPRA for FY 2008-09, says a press release.

NEPRA chairman and members took strong exception to the continued high transmission & distribution losses and non-recovery of dues by Distribution Companies.

NEPRA directed Distribution Companies to reduce electric power losses, reduce O&M expenses and improve overall efficiency to cut costs to provide relief to consumers.

DISCOs were directed to implement an effective recovery mechanism for outstanding dues of both the government and private consumers.

The authority stressed to the DISCOs that while they could not influence the power generation mix or Power Purchase Price (PPP), they could however, reduce the sale price of electricity to end-consumers by bringing about above-mentioned improvements.

NEPRA also reviewed the progress of installation of Time of Use (TOU) meters and directed DISCOs to complete installation in a timely manner.

The introduction of TOU meters will be an effective tool for demand side management and will help consumers to avail much cheaper off-peak tariff rates, in addition to reducing the demand for DISCOs.

Representatives of public, provincial governments and trade bodies who participated in the hearing, which had been publicized through newspapers and continued from May 11-22, requested the authority to disallow any increase in overhead expenses by DISCOs.

http://www.thenews.com.pk/daily_detail.asp?id=179004