July 19, 2002	Friday	Jamadi-ul-Awwal 8, 1423

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ISLAMABAD, July 18: Nepra on Thursday allowed an unprecedented power tariff increase of 44 paisa per unit to be suffered by some 10 million domestic consumers across the country, excluding Karachi.

The tariff revision exercise would yield Rs20 billion to 12 corporate companies of Wapda through an expected sale of 47.4 billion units.

In percentage terms, the tariff for domestic consumers increased by an average 15 per cent, industrial by 9pc, commercial by 1pc and agricultural tubewells by 18pc. The increase covers the eight paisa per unit interim raise approved by Nepra in May.

Nepra had concluded on June 22 the public hearing of the Wapda’s petition seeking a Rs1.2 per unit increase to cover the Rs55 billion cash shortfall, and was under immense pressure from the government and the IMF to increase power rates by at least 58 paisa per unit.

Nepra Vice-Chairman Fazlullah Qureshi said that though the new tariff was subject to a formal notification by the federal government, it would be applicable from July.

He admitted that this was the highest tariff increase allowed by the regulator since its inception in 1997.

All residential consumers would have to bear an increase of 47 paisa per unit. Since there would be no increase for life-line consumers consuming up to 50 units a month, the average increase for domestic consumers would come to around 44 paisa per unit.

In percentage terms, a 21pc increase has been allowed for the domestic consumers of 51 to 100 units. And for the consumers of 1001-4000 units the increase comes to around 7pc. This means that 10 million domestic consumers would pay an additional 44 to 47 paisa for every unit they consume.

On the monthly basis, an existing domestic bill of Rs233 for 100 units would reach Rs300.

The industrial tariff has increased by an average 36 paisa per unit or 9pc. In this category, the B-1 and B-2 tariff (up to 40kw and 40-500kw) has increased by 38 paisa per unit, followed by B-3 (TOD-time of day) by 34 paisa per unit, and B-4 (66/132 KV) by 30 paisa per unit.

The commercial tariff has increased by 8 paisa per unit or 2pc. A total of 200,000 consumers fall under this category.

Agriculture tubewell tariff has increased by an average 17pc. Tubewell tariff for Punjab and Sindh has been raised by 54 paisa per unit followed by 50 paisa per unit for tubewells in the NWFP and Balochistan.

For the first time, a Nepra levy of 0.125pc per unit has been incorporated in the tariff to meet the running expenses of Nepra.

Nepra has directed the Wapda companies not to bill FATA consumers more than 300 units a month and provide to the regulator a schedule for the installation of electricity meters there. FATA consumers are sometimes charged 1,700 units a month.

Wapda has been directed to bring its losses down to 23pc from the existing 26pc by the year-end.

Under the Nepra Act, 1997, Wapda has the right to challenge Nepra’s calculations within five days or file a petition within 15 days for a review of the determination if it is dissatisfied with the final outcome.