National Electric Power Regulatory Authority (Nepra) on Friday reserved its judgement on a review petition filed by the Ministry of Water and Power aimed at reconsideration of tariff determinations of Discos for 2014-15, a reduction in subsidy and inclusion of surcharges in the consumer end tariff. The public hearing was chaired by the Chairman Nepra, Brigadier Tariq Sadozai (Retd) who, insiders claim, gave assurance to the interviewing committee headed by the Finance Minister that he will extend full co-operation to the government with respect to implementations of policy guidelines to be issued from time to time.
Pleading the case of Water and Power Ministry, Zargham Eshaq Khan, Joint Secretary who represents the Ministry in talks with the IMF, requested Nepra that Discos' tariff determined for the fiscal year 2014-15 should be reviewed and a reduction in subsidy from Rs 0.70 to Rs 2.50 per unit and surcharge of Rs 3 per unit should be made part of schedule of tariff. He informed the Nepra Authority that the federal government has decided not to pass on reduction in tariff to consumers.
Rashid Law Associates gave arguments against the admission of Water and Power Ministry's petition, saying that review petition can be filed within two weeks but the Water and Power Ministry did not follow the rules. The representative of Rashid Law Associates contended that the review petition of Water and Power does not qualify for hearing. He further stated that consumers should not be punished for poor performance of Discos.
The following textile mills filed objection petition in compliance of the direction of Lahore High Court Lahore (LHC) of May 28, 2015; ( i) M/s Colony Textile Mills Limited (Formerly known as Sheikh Spinning Mills Limited; Colony Industries (Pvt) Limited & Colony Mills Limited, Ismail Aiwan-e-Science Building, 205 Ferozepur Road, Lahore; (ii) M/s Alam Cotton Mills (Pvt) Ltd, A-201-B, 2nd Floor, City Tower, Main Boulevard Gulberg-II Lahore; (iii) M/s Sajjad Textile Mills Ltd , 19-B Zafar Ali Road Gulberg-V Lahore; (iv) M/s Acro Spinning & Weaving Mills Ltd (Raiwind), 106/3, Saint Jhons Park, Lahore Cantt; (v) M/s Acro Spinning & Weaving Mills Ltd (Multan), 106/3, Saint Jhons Park, Lahore Cantt; (vi) M/s Nishat (Chunian) Ltd, 31-Q, Gulberg-II Lahore; (vii) M/s Zulaikha Textile, 106/3, Saint Jhons Park, Lahore Cantt; (viii) M/s Gravity Mills Ltd, 106/3, Saint Jhons Park, Lahore Cantt; and (ix) M/s Din Textile Mills Ltd Din Tower, 1-Green Acrees, 7-KM Road,
APTMA maintained that public hearing of Nepra, at the behest of Federal Government impugned letter dated May 21, 2015 for inclusion of Neelum-Jhelum, financing cost and tariff rationalisation surcharge as electricity distribution cost of Discos as a levy for which the Federal Government is not providing any service and there is no quid pro quo against the aforesaid surcharges, hence merits to be rejected outrightly. The Association further stated that Nepra has no legislative mandate for holding public hearing in order to impose surcharges, additional charges or fees through an administrative decision under the garb of section 31 (5) and 31 (4), as the same does not constitute "tariff" under section 31 of the Nepra Act, 1997 hence any reconsideration request merits to be rejected out rightly.
Discos are licensees under the Nepra Act. They cannot be allowed to raise a bill for additional surcharges and deposit the same in escrow accounts of Neelum-Jhelum Company and Central Power Purchasing Company of NTDC under section 21 of the Nepra Act 1997. Hence actions of the Federal Government to authorise collection of additional surcharges in the garb of reconsideration request merit to be rejected out rightly. Nepra being a regulator has an obligation to protect the interest of consumers impartially
Secretary, All Pakistan Textile Mills Association (APTMA) argued that power tariff is already high because of which Pakistan's textile sector is not competitive with neighbouring countries. Textile exports have declined by 16 per cent during the last one year. He argued that international buyers are giving preference to other countries because of the price issue. Ministry of Water and Power's lawyer Munawar Islam replied to the queries raised by Rashid Law Associates and APTMA, insisting that the petition qualifies for hearing. He also cited a judgement of Balochistan High Court (BHC) in support of surcharge.
He maintained that the government will not get any additional revenue even by reducing subsidy and surcharge part of tariff schedule, rather the collected money will be used to pay off interest on loans availed by Discos. He claimed that 80 per cent domestic consumers will continue to get subsidy. The Authority heard the viewpoints of different stakeholders and reserved judgement which insiders claim will be unveiled after due consultation with the government.
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