AT&C-based loadshedding: Pesco, Qesco, Sepco, Hesco and KE warned of legal proceedings

ISLAMABAD: While taking serious notice of consumer complaints regarding (Aggregate, Technical and Commercial) AT&C-based loadshedding in the country particularly, in the areas of Pesco, Qesco, Sepco, Hesco and K-Electric, the Nepra has directed all the companies to avoid such undue loadshedding as it is a clear violation of the Nepra laws.

According to an official statement, the Authority, while taking notice of consumer complaints received during hearings in the matter of monthly Fuel Component Adjustments (FCAs) for DISCOs and K-Electric regarding unscheduled loadshedding, has taken following stern actions: (i) Pesco, Qesco, Sepco, Hesco, and K-Electric have been directed to avoid such undue loadshedding and submit a report within one month, failing which the Authority shall initiate legal proceedings under the Nepra Fine Regulations 2021; (ii) companies have been directed to initiate proceedings against their concerned officers/officials who are directly responsible for such poor performance due to which consumers are suffering and; (iii) advisories to all Chairmen Board of Directors (BoDs) of five DISCOs with copy to Ministry of Energy (Power Division) have been sent showing the performance of respective DISCO and advising them to take necessary steps to avoid such undue load shedding.

While considering the data of 11kV feeders belonging to urban areas, the authority observed that DISCOs have failed to establish their writ.

The authority further directed to make urban feeders free from load shedding by preparing a comprehensive plan indicating reduction of AT&C losses with concrete timeline.

The Nepra had already sent an advisory to the Ministry of Energy (Power Division) wherein, it was categorically communicated that GoP AT&C-based load shedding policy, ie, not to supply electricity to high loss feeders is negatively impacting the overall sales growth from the available “Take or Pay” power plants and thus ballooning the circular debt.

The authority is also of the view that AT&C based load shedding was introduced back in 2017 when there was generation shortage in the country, however, the continuity of same policy does not appear to be beneficial for the power sector. It is also a fact that good paying consumers of the same feeder are badly suffering due to this policy.

Copyright Business Recorder, 2022