Add news
March 2010
April 2010
May 2010June 2010July 2010
August 2010
September 2010October 2010
November 2010
December 2010
January 2011
February 2011March 2011April 2011May 2011June 2011July 2011August 2011September 2011October 2011November 2011December 2011January 2012February 2012March 2012April 2012May 2012June 2012July 2012August 2012September 2012October 2012November 2012December 2012January 2013February 2013March 2013April 2013May 2013June 2013July 2013August 2013September 2013October 2013November 2013December 2013January 2014February 2014March 2014April 2014May 2014June 2014July 2014August 2014September 2014October 2014November 2014December 2014January 2015February 2015March 2015April 2015May 2015June 2015July 2015August 2015September 2015October 2015November 2015December 2015January 2016February 2016March 2016April 2016May 2016June 2016July 2016August 2016September 2016October 2016November 2016December 2016January 2017February 2017March 2017April 2017May 2017June 2017July 2017August 2017September 2017October 2017November 2017December 2017January 2018February 2018March 2018April 2018May 2018June 2018July 2018August 2018September 2018October 2018November 2018December 2018January 2019February 2019March 2019April 2019May 2019June 2019July 2019August 2019September 2019October 2019November 2019December 2019January 2020February 2020March 2020April 2020May 2020June 2020July 2020August 2020September 2020October 2020November 2020December 2020January 2021February 2021
News Every Day |

Power tariff raised by Rs1.95/unit

0
Power tariff raised by Rs1.95/unit

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Friday approved an across-the-board Rs1.95 per unit (15pc) increase in tariff under uniform tariff regime though it questioned the justifications on technical and legal basis.

For the first time in almost two decades, the rate for lifeline consumers — using up to 50 units per month — has therefore also increased, to Rs3.95 per unit from the existing rate of Rs2 per unit, as the application of Rs1.95 per unit is for all consumers.

The tariff increase was immediately notified by the Power Division, which said the tariff increase was also applicable to Karachi Electric to maintain uniform rates across the country.

The Nepra decision is based on the federal cabinet’s directives of Jan 15 that had approved a tariff increase of Rs1.95 per unit along with targeted tariff differential subsidy of Rs185 billion under Section 31 (4) of the Nepra Act. The tariff increase would ensure the earning of about Rs200 billion by power distribution companies (Discos).

This is the third increase in tariff determined by the regulator in as many days. On Feb 10, the regulator allowed Rs1.54 per unit monthly fuel cost adjustment to be charged this month. This was followed by 83 paisa per unit increase on Feb 11 on account of quarterly tariff adjustments.

The government told the regulator that it had adopted guidelines to structure the discretion for arriving at uniform tariff, being reflective of economic and social policy of the government and based on the consolidated revenue requirement determined by the regulator for Discos at Rs1.681 trillion for fiscal year 2019-20.

Protection of low-end consumers

It said the uniform tariff regime was based on socio-economic objectives, budgetary targets in field, protection of low-end consumers from price escalation through provision of subsidy and maintaining uniform tariff across the country for each consumer category.

It said the government in the past had been using various surcharges like equalisation surcharge and financing cost surcharge etc but those powers had come to an end after the Nepra Act was amended in 2018. A new uniform tariff framework has been introduced under Section 31(4) in their place, which includes both the price equalisation and socio-economic elements of the previous regime, price equalisation by the uniform, cross-entity nature of the tariff itself and the socioeconomic dimension by tying grant of tariff to public consumer interest.

“From their application, it is apparent that the Federal Government is employing the new Uniform Tariff framework in an analogous manner to the previous surcharge and subsidy framework, by seeking to incorporate subsidies into the uniform tariff, to achieve price-equalisation between Discos consumers, and to fulfill other socio-economic objectives under policy”, the Nepra noted.

The regulator said the government had incorporated energy subsidies within the uniform tariff, non-determination of which would lead to the impoverished consumer category to suffer from detrimentally inflated energy prices. Further still, non-notification of revised or rebased tariff would result in huge quarterly adjustments leading to increase in circular debt, “which is not in the interest of the consumers and would adversely affects the economy of the country”.

“These are grave and inescapable consequences attached to the Uniform Tariff being sought,” the regulator said, adding that “in view of these pragmatic considerations, it would be inequitable and imprudent for the Nepra to dismiss the Uniform Tariff motion on the basis of non-exhaustive compliance of the procedural elements of Section 31(4)”.

Moreover, mitigation of these adversities was in the interest of public consumer, the regulator said.

It also pointed that the government had not submitted consolidated accounts, rather had consolidated the individual determined revenue requirement of all Discos so that the same was reflective of the consolidated accounts for the purpose of tariff setting. The regulator said it was allowing the tariff increase for the fact that after the amendment to the Nepra Act, the relevant bodies were going through a transition phase for devising and enacting required frameworks and subordinate legislations.

Published in Dawn, February 13th, 2021





Read also

Teen Mom Kailyn Lowry jokes around with nemesis Briana DeJesus’ ex Devoin Austin as he appears on her podcast

PTI seeks explanation from Jatoi for making graft charges against party

Recruiters from Amrop Ukraine to help to choose Ukrspyrt board head




News, articles, comments, with a minute-by-minute update, now on Today24.pro



Today24.pro — latest news 24/7. You can add your news instantly now — here
News Every Day

Marketing Automation & WordPress: Plugins & Tips to Get Started