ISLAMABAD, Aug 7: The National Electric Power Regulatory Authority (Nepra) has increased unannounced the power tariff for commercial, industrial and bulk consumers by an additional 10 to 20 paisa per unit in a readjustment of figures to shift the burden away from domestic consumers.

The federal government had “requested” Nepra to pass on the burden of domestic consumers to other consumer classes which was accepted on July 29, with the residential tariff being reduced from 47 paisa to 27 paisa per unit.

According to Nepra determination obtained by Dawn, this increase in tariff is in addition to the one announced by Nepra on July 18. This has been made to partially offset the 20 paisa per unit reduction in power rates on the directives of President Pervez Musharraf.

This reduction had a total impact of Rs4.17 billion on Wapda revenue. But this does not mean that the 20 paisa per unit reduction would be available to domestic consumers for ever. “The balance increments required would be deferred and staggered in gradual instalments over a period of time (unspecified),” the Nepra held in its judgment.

Finance Minister Shaukat Aziz had announced on television and radio a 20 paisa cut in 47 paisa per unit increase earlier announced by Nepra. It was however kept as a closely guarded secret that the impact of reduction in domestic tariff had proportionately been met by passing the additional burden on to commercial, industrial and bulk consumers.

“The shortfall in the Wapda revenue may be met through the following measures: adjustment of revenue requirement with respect to cost, possible appropriate increases in the rates of other consumer classes and (the) remaining shortfall to be met through Wapda or federal government from other sources,” the Nepra judgment stated.

Accordingly, Nepra increased rates for commercial consumers by 20 paisa per unit in addition to existing interim increase of 8 paisa per unit.

Similarly, the rates for bulk supply consumers of C-1, C-2 and C-3 have been raised by 10 paisa per unit in addition to the existing 8 paisa per unit increase. The increase in rate of C-1 (below 20 KW) was already 48 paisa per unit, therefore this quantum has been kept unchanged.

On the same grounds, the rates of industrial consumer classes has been increased by 2 paisa per unit in addition to 36 paisa per unit increase announced by Nepra on July 18, 2002. The total impact of this additional increase in the aforementioned three categories has been estimated at Rs0.92 billion.

In its tariff determination of July 18, there was no increase for commercial consumers while increase for industry and bulk consumers was to the tune of paisa 36 and paisa 17 respectively.

This means that total increase including interim increase for commercial consumers would amount to 28 paisa per unit, 38 paisa for industry and 27 paisa for bulk consumers. Wapda’s commercial, bulk and industrial consumers are estimated at 1.7 million, 200,000 and 3,000 respectively.

Another Rs2.37 billion would be met through reduction in the tariff of Chashma Nuclear Power Plant (Chashnupp) being paid by Wapda. This will, however, be achieved shortly by undoing a decision of the Economic Coordination Committee (ECC) of the cabinet that had set sale purchase rate of Rs3.15 per unit.

Wapda had contended that sale purchase rate between Wapda and Chashnupp should be Rs2.05 per unit. The chairman Wapda had fought from pillar to post for this rate but even the President did not oblige him earlier.

“The authority (Nepra) has been informed that the matter is being reconsidered by the federal government and the rates requested by the Wapda are expected to be agreed upon”, the Nepra noted.

It said that when the matter was finally referred to Nepra for approval, the applicability would result into a 25 per cent reduction in capacity costs relating to Chashnupp.

“Therefore, the authority has adjusted the revenue requirement for fiscal 2003 with a reduction in capacity costs of Rs2.369 billion,” the Nepra said. The capacity payment to Chashnupp would now come down from Rs9.475 billion to Rs7.106 billion.

The Nepra noted that rates for agriculture class have already been raised by an average 54 paisa per unit. Therefore it would not be appropriate to increase it any further.

Wapda has now been directed to reduce its line losses to 22.5 per cent by next year as against a target of 23 per cent set on July 18, 2002.