Provincial level: government setting up power regulatory authorities

The government is setting up power regulatory authorities at the provincial level as National Electric Power Regulatory Authority (Nepra) is only engaged in tariff determinations and monthly fuel adjustments, well-informed sources in the Ministry of Water and Power told Business Recorder.
The sources said subject of electricity and all the regulatory authorities established under the federal law are now included in part II of the Federal Legislative List. The provincial government can determine the tariff for distribution of electricity within the province under sub clause (d) only when it purchases electricity in bulk from the national grid under sub clause (a) for distribution within the province or when it constructs power houses and grid stations and lays transmission lines for use within the province under sub clause(c).
According to a study conducted by a power sector analyst, Arshad Abbasi, the cause of Nepra''s failure to conform to its vision has been fundamentally the problem of good electricity governance in Pakistan. Nepra Act gives enough powers to the authority to improve electricity governance but nepotism in appointments of the Nepra Chairman and members has undermined the performance of the authority.
"The current assignment of Nepra is mainly tariff determination and issuing of licenses without focusing on any other issue. The determination of tariff can be performed with the help of an energy tariff calculator, which is available online. The online calculator is designed for screening power projects. Additionally, this calculator can help calculate the annual fuel consumption and CO2 emissions that are yet to be done by Nepra," said Arshad Abbasi while talking to Business Recorder.
He maintained that most of the time Nepra is involved with hearings on fuel adjustment charges. For accurate and unbiased adjustments, expenditure of a few thousand rupees on specific software can not only substantially help consumers, but also help save financial resources. The annual income of Nepra during 2009-10 was Rs 49324 million and administrative cost was Rs 190 million.
"There is immediate need to set a real-time mechanism to monitor the public sector hydropower development projects. Back in 2008, one of us (AHA) had developed a real-time monitoring mechanism for public sector projects, including hydropower project for the Planning Commission to maintain transparency and good governance in the country," he added.