ISLAMABAD, Aug 10: The National Electric Power Regulatory Authority (Nepra) has introduced two-part tariff for domestic and commercial consumers of Wapda's distribution companies , under which the consumers would pay for the sanctioned load as well as the electricity consumption in their monthly bills.

Nepra had rejected the two-part tariff request of Wapda about a year ago on the protest of various consumer groups, but has now given an option to the residential and commercial consumers to use "Time of Day" (TOD) metering system, sources told Dawn.

Nepra has also asked the distribution companies to conduct studies on the question of two-part tariff as soon as possible so as to make it compulsory for all consumers. It has also done away with the high domestic consumption slab of 1000 units per month and above and all consumers using more than 300 units per month would be charged at a uniform level.

The sources said the consumers with more than 300 units per month consumption would be charged at Rs240 per kw having a sanctioned load of 20-kw and above which would come to Rs4,800 for 20-kw capacity load.

Wapda has been arguing that consumers normally reserved its capacity through higher sanctioned load, although they seldom used it to the full and hence Wapda faced losses for making available its capacity which was not used and paid for.

Its another argument has been that since the power utilities were paying fixed capacity and variable energy charges separately to the independent power producers (IPPs) for supply of power, even though it may not use that capacity, it should have the right to charge fixed capacity charges from consumers.

The industrial sector is already being billed under the two- part tariff system, in which an industrial unit has to pay for a certain capacity. Nepra now says that the total revenue accrual is the sum of the individual consumer class revenues arising from the rate of that category multiplied by the units expected to be sold in that category.

The revenue accruing in case of consumers billed on a two- part tariff is affected by the load factor of the power consumption in that category and is therefore estimated on the basis of average per kwh revenue accruing from that class of consumers during the previous year on actual basis.

Nepra said a radical revision of the existing tariff pattern without carrying out a detailed study may not be fair to the consumers consuming less units per month. Till such a study is carried out by the distribution companies and the matter examined in detail, the existing pattern has been allowed to continue with respect to the lower consumption class.

However, for simplicity and reduction of intra class subsidisation one consumption slab of residential consumers i.e. above 1000 units has been eliminated. Thus all of the consumption above 300 units per month will be charged at a uniform rate.

For the higher consumption residential class having peak load requirement of above 20 kw, a two-part tariff has been introduced. Also for this class of consumer an optional tariff based on TOD metering has been allowed i.e. residential consumers having peak load requirement of above 20 kw, has been given the option to shift to TOD tariff.

Similarly the commercial consumer class consuming up to and above 100 units per month have been combined into one class and an option for shifting to TOD metering allowed to commercial consumers having peak load requirement of above 20 kw.

With respect to elimination of all the surcharges viz., fuel adjustment surcharge, hydel surcharge and additional surcharge, have been merged into one component of tariff i.e., variable charge, whereas the fixed charge a component has been retained, thus the tariff rates as appearing in the bill of consumers would be simplified to contain only fixed charges (where applicable) and variable charges.

The distribution companies have been directed to undertake studies for the assessment of the cost of service to each consumer category and consumption class separately and to submit a proposal for a revision of the tariff structure and the associated terms and conditions of tariff on the basis of the study for approval.