18 April 2005	Monday	08 Rabi-ul-Awwal 1426

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ISLAMABAD, April 17: The government has asked the power distribution companies to immediately submit fresh petitions to the National Electric Power Regulatory Authority (Nepra) for tariff revision with effect from July 1. Sources in the water and power ministry said on Sunday that the KESC and the distribution companies of Wapda had been informed that their tariffs determined by Nepra in February were not applicable and they should file fresh petitions for tariff revision based on their revised fuel costs.

In February, Nepra had determined tariffs for the Water and Power Development Authority companies and the KESC based on furnace oil price of Rs11,000 per ton, which has increased to about Rs13,000 per ton.

The sources said Nepra had also asked the companies to provide latest data on power production and cost of electricity generation for the last six months, so that it could be incorporated in the next biannual tariff review due on July 1.

Nepra sources said the average tariff for KESC consumers was likely to increase substantially because its power generation cost had increased because of rise in the oil price. The KESC is overwhelmingly dependent on thermal power.

However, they said, the tariff for Wapda companies would remain more or less the same because its hydroelectric power production had increased significantly, which had neutralized the impact of higher oil prices.

They said the power companies were required to submit their petitions this month to provide enough time to Nepra to examine the data and hold public hearings for tariff revision.

The government had earlier decided not to notify the revised power tariffs determined by Nepra in the first week of February to reduce losses of the distribution companies before those were given full financial and administrative independence in July.

Nepra would give its determination on the petitions by end of June.