August 28, 2008	Thursday	Sha'aban 25, 1429

ISLAMABAD, Aug 27: The government is learnt to have delayed a planned increase in electricity tariff for distribution companies of the Water and Power Development Authority (Wapda) until the presidential election.

The National Electric Power Regulatory Authority (Nepra) determined last week up to 76 per cent increase in electricity tariff of the companies and advised the federal government to notify the new rates.

The ministries of water and power and finance were still in the process of working out a uniform increase for consumers of different distribution companies when the political leadership advised them to put on hold a formal notification for the time being, sources told Dawn.

They said the Pakistan People’s Party wanted to raise the tariff after the Sept 6 presidential election.

Nepra has determined different tariffs because rates for Hyderabad, Peshawar, Quetta and Multan were much higher than for distribution companies of Islamabad, Lahore, Gujranwala and Faisalabad.

The government wanted to increase electricity rates for all distribution companies at a uniform rate of about 61 per cent to avoid relocation of industrial and commercial enterprises to Punjab because of an expected rise in input costs in other provinces.

Separately, the government has already empowered Nepra to allow monthly revisions of tariffs of all distribution companies, including the Karachi Electric Supply Company, through an amendment to the Nepra Act to pass on the full impact of fuel prices to consumers.

From September onward, Nepra would change the distribution tariff every month under an automatic fuel adjustment mechanism and the change so determined would come into force with immediate effect without a notification by the federal government.