Tariff determination: industry criticises Nepra for taking dictation from government

The electricity consumers on independent feeders have criticized the National Electric Power Regulatory Authority (NEPRA) for taking dictation from the government on tariff determination, resulting into closure of industrial units because of undue delay in notification of tariff determined in 2015-16.
Industry sources said they were paying through the nose for adamant attitude of the government against the tariff determined by the NEPRA for consumers with B-3 connections. "The NEPRA has announced three tariffs for B-3 consumers in a period of three months to meet the government's desire of industrial tariff," said an industrialist.
The NEPRA had determined a rational tariff in 2016. Under this tariff scheme, FESCO and LESCO had announced Rs 6.25 and Rs 6.85 per kWh tariff for B-3 consumers respectively. However, the government refused to notify it and preferred to challenge it before the court of law. The court directed the NEPRA to rehear tariff petitions in July 2017 and a new tariff was announced in September 2017. Under this tariff, LESCO tariff was determined at Rs 7.97 per kWh for B-3 consumers. But the government abstained from notifying it.
On 23rd October 2017, the NEPRA offered adjustment of tariff and determined a new tariff of Rs 9.16 per kWh which the government has again failed to notify. The industry sources said the government is bound to notify tariff within 15 days of its determination by the NEPRA but the government is violating it time and again.
It may be noted that the Council of Common Interest (CCI) has been advocating for a uniform tariff within the country but the government is neither following the CCI nor NEPRA, causing threat to the survival of industry by and large, particularly in the province of Punjab where the industry is facing closures due to high cost of doing business.
It is worth noting that the industry is paying a tariff of Rs 14.15 per kWh which was determined in 2015. Meanwhile, the government has been clubbing various burdens to this tariff and putting industry into a topsy-turvy situation by and large. The industry circles have demanded notification of tariff announced in 2016 that was determined for next five years - 2019-2020.