July 24, 2002	Wednesday	Jamadi-ul-Awwal 13,1423

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ISLAMABAD, July 23: Consumer Rights Commission of Pakistan (CRCP) welcomed the president’s move of directing Wapda to put on hold the implementation of recent increase of 40 paisa per unit in power tariff.

The implementation has been temporarily put on hold and consumers have to wait for the final decision after a review by the Nepra.

Given CRCP’s engagements with the government in a legal manner, and public pressure, the government has directed Wapda not to implement Nepra’s decision, it said.

Under section 31(4) of the Nepra Act 1997, Federal Government can refer back a decision of Nepra regarding Standards and Procedural Rules, 1998, section 16. The CRCP itself is taking up the issue with Nepra for review by the full strength of the Authority.

The CRCP secretary general Mian Abrar Hafeez said it was for the second time that CRCP efforts had prevented

Wapda from passing on the cost of its inefficiencies to consumers and reap profit on unjustified basis.

The CRCP had pleaded against Wapda’s petition for 98 paisa per unit raise in electricity tariff in June 2001, resulting in dismissal of the petition by Nepra.

In the recent petition filed by Wapda for 88 paisa per unit, CRCP intervened in the tariff determination proceedings of Nepra and pleaded for rejection of Wapda’s petition.

However, later the finance ministry had pressurized Nepra to allow 58 paisas per unit increase in power tariff in view of the commitments made by the ministry with the international lending agencies.

Since Nepra had been exposed to pressure by the government, the CRCP took up the issue with the quarters concerned pleading that any intervention by the government or its agencies in tariff related matters is against the Nepra Act, 1997.

Hafeez emphasised that Wapda’s inefficiencies should be kept in view while reviewing the decision.

The Wapda’s energy losses were 27.3 per cent in the fiscal year 1999-2000 and 25.5 per cent in 2001-02, which translated into a large amount of money.

It failed to reduce its losses according to the previous recommendations of the Authority, It had recommended a reduction in losses from 27.3 per cent to 25 per cent during 2000-01.

Wapda’s organizational and management cost in 2003 was projected very high, which was not commensurate with the inflation rate. In addition, Wapda gives 4 per cent of its total units produced, to its employees free of cost.

He said the CRCP was not expecting this decision from Nepra in view of Wapda’s inefficiencies and its failure to comply with directions of the Authority for the last three years.