December 15, 2003	Monday	Shawwal 20, 1424

Please Visit our Sponsor (Ads open in separate window).

ISLAMABAD, Dec 14: The National Electric Power Regulatory Authority has asked the government to provide a formula for maintaining a uniform tariff for the distribution companies, Dawn has learnt.

The government and Nepra are required under an agreement with the International Monetary Fund to put in place separate tariffs for all the distribution companies of Wapda not later than Dec 31 as part of a corporatization programme.

If Nepra issues tariff determinations on the basis of petitions filed by the distribution companies, there could be a lot of problems for the government because different tariffs would be applied in different parts of the country, a Nepra official said.

The Quetta Electric Supply Company has sought 109 per cent increase in its tariff to Rs8-9 per unit from the existing Rs4.09 per unit.

Peshawar and Hyderabad electric supply companies have demanded 15 to 42 per cent and 20 per cent increase in tariff, respectively. The increase demanded by the Lahore Electric Supply Company is 1.6 to 5.6 per cent.

On the other hand, the Islamabad Electric Supply Company has sought around seven per cent reduction in its tariff to below Rs4 per unit.

Sources said Nepra had also sought a policy guideline by Dec 17 on whether the government intended to separate the Federally Administered Tribal Areas from the Peshawar Electric Supply Company.

The government has decided to establish a Tribal Electric Supply Company after so that Pesco’s system losses could be brought down. The system losses coupled with Fata’s Rs29 billion arrears raise Pesco’s losses manifold.

The separation would reduce Pesco’s losses and contain its tariff increase.

Sources said the water and power ministry had asked Wapda Chairman Tariq Hameed to submit recommendations to the government immediately as to how the losses of various distribution companies could be equalized and what would be the amount required for a uniform electricity tariff.

They said the government was considering to create a universal obligation fund by taxing the profitable companies of Wapda to subsidise the companies incurring losses.

Another option under consideration is to ask the provinces where the loss making companies are located to share a subsidy with the federal government to be paid to such companies.

These sources said the problem might delay the announcement of tariff determination for a few days.

They, however, said the International Monetary Fund would not make it an issue as it had already granted three waivers to Pakistan for non-fulfilment of power sector related performance criteria.