ISLAMABAD, July 4: The Peshawar and Islamabad electric supply companies on Monday pleaded 31 per cent and 26 per cent increase in their average power tariff, respectively, but industrial sector opposed the move. The two companies also proposed a multi-year tariff for three years on the basis of an average 10 per cent inflation rates. For the first time, no public sector intervener, like the Planning Commission, has come forward to oppose the tariff increase.
The National Electric Power Regulatory Authority (Nepra) which is holding public hearing of eight power distribution companies of Wapda on a day to day basis, objected to the multi-year tariff and hinted at allowing tariff for only one year on an experimental basis.
Nepra also criticized the distribution companies (Dis-Cos) for preparing their petitions on the instructions of Wapda, instead of their own financial requirements, although they are independent entities.
Nepra also announced that it would not accept financial results based on existing tariffs and, instead, take into account results approved by it but not notified by the government.
The hearing on tariff petitions of other Dis-Cos — Hyderabad, Multan, Lahore, Faisalabad, Quetta and Gujranwala — would be completed by July 8.
“You are independent operational companies. You should not take decisions on Wapda’s behalf and should file tariff petitions as independent entities,” said Nepra Chairman Lt Gen (retd) Saeed-uz-Zafar while presiding over the hearing of tariff petitions of Islamabad Electric Supply Company (Iesco) and Peshawar Electric Supply Company (Pesco).
Pesco demanded 31 per cent or up to 83 paisa per unit hike in consumer-end tariff, raising its average sale rate from Rs4.03 to Rs5.26 per unit for the year 2005-06. Its transmission and distribution losses stood at 35.5 per cent.
Iesco demanded an average of 26 per cent increase in tariff, which ranged between 83 paisa per unit and about 14 paisa for lifeline consumers. Iesco projected its revenue requirement on the basis of 14.4 per cent line losses and said it could not reduce the losses.
Nepra’s case officers and All Pakistan Textile Mills Association and the ICI Pakistan, opposed multi-year tariff formula on different grounds.
Iesco Chief Executive Brig Shahbaz pleaded that the company be allowed an increase in consumer tariff to meet its development and expansion plan.
