April 2, 2003	Wednesday	Muharram 29, 1424

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ISLAMABAD, April 1: The National Electric Power Regulatory Authority (Nepra) has allowed eight electric distribution companies of Wapda to increase their tariff by an average 12 paisa per unit to provide around Rs1.5 billion relief to the Wapda.

The domestic consumers would face the highest increase of 15 paisa per unit as part of phased withdrawal of cross subsidies. Lifeline domestic consumers using up to 50 units per month would remain unaffected, a Nepra member told Dawn on Tuesday.

According to the Nepra determination, tariff for industrial consumers would go up by 10-12 paisa per unit. The commercial tariff would increase by only 8 paisa per unit because the sector was already paying higher tariff, said the member. The agriculture tariff would also increase by 10-12 paisa per unit. The overall average tariff comes to 12 paisa per unit or three per cent.

The member said the Nepra has calculated that Wapda required an average 26 paisa per unit (6.2 per cent) increase in tariff but more than three per cent increase could not be made under the automatic fuel adjustment formula in a quarterly review.

The remaining 14 paisa per unit increase that was required to meet Wapda’s additional burden due to increased fuel bill, would be implemented in June when Wapda’s annual tariff review would become due even if international oil prices eased off as recently happened with other petroleum products, said the Nepra member.

He said that Wapda had demanded around 64 paisa per unit increase but Nepra calculations revealed that 26 paisa per unit increase was justified although only 12 paisa per unit increase was allowed under the rules.

The member said that final furnace oil rate of March 17 was taken into account to calculate Wapda’s fuel oil bill although it was lower than rates prevailing on March 2, 2003.

The federal government is bound under the 1997 Nepra Act to notify the Nepra determination in the official gazette within 14 days or refer back to Nepra to reconsider its judgment.

The second determination (i.e. on the request of government) has to be notified within seven days.

Asked to comment on a press report that government could provide Rs137 million to Wapda if it did not want to pass on the tariff increase to the consumers, the member Nepra said that the total impact of fuel price increase on Wapda during the last three months was around Rs3.5 billion that required 26 paisa per unit increase.