ISLAMABAD: Only a week after the federal cabinet lifted ban on recruitments, the National Electric Power Regulatory Authority (Nepra) on Tuesday strictly blocked all power distribution companies from recruiting non-technical staff – particularly meter readers – and held discretionary billing by staff responsible for recent public outcry.

“New enrollment in non-technical cadre would not be allowed. No more non-technical staff, no more meter readers,” said Khawaja Muhammad Naeem, Nepra’s member Punjab on Tuesday asking the distribution companies to introduce new systems of meter reading and new technologies with minimum human interference and discretion.

The Nepra said it would also consider introducing a few more slabs between 200-700 units with cascading increase in per unit rate to contain incentive for artificial build up of units by meter readers to squeeze consumers.

Introduction of more slabs between 200-700 units is under consideration

Beyond first two categories of 50 units and 100 units per month with Rs2 and Rs4.39 rate, the new slabs may be introduced as 200, 300, 500 and 700 units with rates starting from Rs8, 11, 13, 16 and 18 per unit respectively. The Nepra has sent this suggestion to all distribution companies for their views before a final notification is issued.

Mr Naeem presided over a public hearing on tariff petition of Islamabad Electric Supply Company (Iesco) seeking 10- 28 per cent increase in electricity tariff in various consumer categories to meet its revenue requirement of Rs126 billion during the current fiscal year.

Member Khyber Pakhtunkhwa (KP) Himayatullah Khan and Member Balochistan Haroon Rashid were other members of the panel.

Chief executive of Iesco said at the hearing that the company had 81pc workforce against sanctioned strength and 76pc officers and would require additional allowance in consumer tariff to hire more workforce. He said that Islamabad based distribution company was at the top of the performing companies, with recoveries at 90.4pc for 2013-14 against total electricity billed and 9.47pc system losses against Nepra target of 9.44pc.

The federal cabinet had lifted ban on federal recruitments last week when water and power ministry pleaded that 35-40pc billing by distribution companies was presumptive (estimated) because of shortage of staff and meter readers who could not reach out to all consumer meters every month.

When asked why Nepra had bar induction of meter readers and non-technical staff as power ministry had got the ban lifted to add more meter readers, Khawaja Muhammad Naeem said the manual reading involved human discretion to manipulate billing and created problems for the consumers.

“We are enforcing (the distribution companies) to introduce meter reading through technology like Sui Southern Gas Company which has recently been introduced as a pilot project in Peshawar Electric Supply Company,” he said adding that all other companies have also been asked to adopt the same technological model.

The new system provides an opportunity to the consumers to confirm previous month consumption along with current month consumption electronically with real time consumption and reading, he said.

The advantage of the new system would be elimination of the human resource discretion and maximum consumer satisfaction to match his/her bill with real reading on ground. This will reduce the cost of billing that varied between Rs12-18 in different distribution companies and resultantly consumer complaints and allegations of corruption would come down and have positive effect on consumers.

He said all distribution companies had been asked they should enroll all technical staff to improve service delivery, reduce human resource expenses and cut down on complaint handling.

At the same time, Discos have asked that non-technical staff should be replaced with technology to reduce human errors and reduce tariff.

The three members of Nepra panel were of the unanimous view that because of a wide gap between tariff for first 200 units and for 300-700 units (Rs8 to Rs16), the meter readers or their senior management enjoyed the incentive to add a few units and move the consumers to a higher slab like institutional policy.

Member Balochistan Haroon Rashid the meter reading was at the total discretion of the meter readers. KP member Himayatullah Khan said it was institutional tactic of the Discos to increase and decrease slabs by simple adjustment in reading and many influential were taking benefit of this practice.

Mr Rashid pointed out all payments being made to central power purchase agency (CPPA) by Discos was illegal because the two sides have not signed an agreement. They noted increased allocations for working capital, financial charges and pensions funds to build consumer tariff and resolved to discourage such allowances.

Published in Dawn, October 1st, 2014