Nepra opposes rules to implement uniform electricity tariff

Aftab Ahmed

Islamabad: National Electric Power Regulatory Authority (NEPRA) has opposed modification in electricity tariff rules to eliminate subsidy within the Industrial, Commercial, and Bulk Consumers.

The power division has proposed modification in tariff rules 1998 to give the effect of uniform electricity tariff. The government wants to amend rules to enforce uniform electricity tariffs.

The government is amending rules to implement uniform electricity tariffs.

The NEPRA opposed amendments that will require to deal with under its Regulations prescribed and regulated under its Authority.

Council of Common Interests vide case No.1/3/2013 dated 31-07-2013 approved the National Power 2013 that stipulates to protect low-end consumers from any price escalation.

It also stresses tariff rationalization done to eliminate subsidy within the Industrial, Commercial, and Bulk Consumers.

It further focuses on creating a level playing field by providing power at comparable prices to all industrial users.

Similarly, the ECC had approved the National Power Tariff and Subsidy Policy Guidelines in, 2014 intending to strike a balance between the interest of consumers and capital providers.

NEPRA determined the revenue requirements of each X-DISCOs in line with individual accounts for a different schedule of tariffs.

Accordingly, the power division said that it required an amendment to bring the electricity Tariff standards in conformity with the provisions of the NEPRA Act, concerning the uniform tariff determination of the consumer category.

Consequent to the above, in consultation with other stakeholders, the power division has proposed amendments in the current Tariff Rules. Law &Justice Division has also vetted the proposed amendments.

The power division had circulated a draft summary to the Finance, Law& Justice Divisions, NEPRA, and Provincial electricity departments of Governments of Balochistan, Punjab, Khyber Pakhtunkhwa, and Sindh.

The finance division has offered no objection to the summary regarding electricity tariff. The government of Punjab proposed further rationalization of the uniform tariff as it does not create an extra burden on their electricity consumers.

In this regard, this Division is of the point of view the proposed amendments to the Rules are in furtherance of Section 46 read with Section 50(2) of the NEPRA Act 1997. Authority may, as per provision of the Act, frame the regulations as and when deemed fit.