Nepra allows Rs2 per unit increase in power tariff

ISLAMABAD - In line with the IMF conditionality, the National Electric Power Regulatory Authority has allowed monthly electricity tariff adjustments enabling average Rs 2 per unit increase in the electricity bill for October 2008 to be charged in the subsequent months. NEPRA posted on December 2, 2008, its separate decisions on the petitions of seven state-owned distribution companies other than Lahore Electricity Supply Company (LESCO). Although the NEPRA did not bother even to issue a consolidated press release in this regard, the Authority's decision in favor of the monthly adjustments was of an extra-ordinary significance, a senior official observed requesting anonymity. "It was a litmus test for the PPP government to keep its vows to provide the public relief by subsidizing the monthly adjustments at the same time adhering to the IMF and the World Bank conditionality to do away with the subsidies," he added. He pointed out that the so-called line losses on the average nearing 40 per cent were more alarming than the monthly increase in the bills that were actually to carpet this blatant anomaly The notification of NEPRA says, after incorporating the impact of target distribution losses of 34%, the required upward per unit adjustment in the determined tariff has been assessed as Rs 1.85 in HESCO. The target distribution losses and upward per unit adjustment in the determined tariff of other six DISCOs are as under: MEPCO, 17.50%, Rs 1.39; PESCO, 33.20%, Rs 2.13; QESCO, 20.50%, Rs 1.18; GEPCO, 11.25%, Rs 1.78; IESCO, 11% Rs 1.27 and FESCO, 11.23% Rs 1.76.

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