ISLAMABAD, Aug 2: All the eight power distribution companies (Discos) have asked the National Electric Power Regulatory Authority (Nepra) to review its decision of reduction in electricity tariff announced last month.

A senior Nepra official told Dawn that all the companies have advanced almost similar argument that the proposed reduction in consumer tariff would add further financial difficulties to the already loss-making companies.

"The real issue is not their losses. The review petitions stem primarily from the Wapda's desire to continue with its monopolistic role over the power sector as long as possible", said the official.

He said all the criticism has been directed towards the Nepra for delay in the corporatization of Wapda into corporate entities but now when the process of separate tariff setting has been completed, Wapda authorities feel it painful to give up its powers and let the companies to become independent.

The official said the Nepra had given opportunity to all the stakeholders at various public hearings to determine separate tariffs for all the Discos and had held detailed meetings with officials of the Discos before releasing its determinations.

He said the Nepra had completed the process of tariff determinations very careful and diligently and had reached the conclusion that tariff required to be reduced based on input costs and cash flow requirements of the companies.

He said the Nepra chairman was currently on leave and an appropriate response to the review petitions would be sent to the federal government on his return. He said the ministries of water and power and privatization had also opposed the tariff reductions in view of proposed privatization programme.

On July 16, the Nepra had reduced tariff for industrial and agricultural consumers of Hyderabad, Peshawar and Quetta power supply companies between 48-90 paisa per unit and had asked the federal government to pick up Rs14.1 billion per annum subsidy as a result of this reduction in power tariff so as to maintain uniform rates across the country.

Rates of residential consumers using up to 300 units and commercial consumers up to 100 units in a month of all the companies were maintained at their existing level.

As such, the industrial tariff for B-1 consumers was reduced by 89 paisa, 70 paisa per unit for B-2, 80 paisa for B-3 and 90 paisa per unit for B-4 industrial consumers. Similarly, agriculture tariff was reduced by 48 paisa per unit for these three companies.

The Nepra had conceded that with the new rates, the three companies (Hesco, Pesco and Qesco) will not be able to generate adequate revenues to cover its costs for operation and service expansion.

Similarly, on July 6, the Nepra had reduced the power tariff for all consumers except small residential consumers of Lahore and Multan distribution companies between 41 paisa per unit to Rs1.92 paisa per unit.

On June 28, Nepra had reduced the power tariff of Islamabad and Gujranwala distribution companies ranging between 52 paisa to Rs2.41 per unit. Also it had reduced tariff for Faisalabad Electric supply company (Fesco) by an average 50 paisa per unit.