Hike in security deposits, connections: Nepra asks Discos to file petitions

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) is said to have asked power Distribution Companies (Discos) to file petitions for an increase in security deposits and rates of temporary electricity connections.

The power Regulator has sought petitions from Discos at a time when the Power Division is already in process to increase the tariffs of domestic consumers by withdrawing of cross subsidy of Rs 245 billion so that tariff for all types of industry especially export-oriented industry may be reduced to make exports competitive with regional players. The concept has already been cleared by the Apex Committee of SIFC. However, its mechanism has not yet been given the final touches as it needs IMF nod which had forced the government to withdraw its previous decision regarding supply of electricity to five zero rated sectors at concessional rates.

The Ministry of Energy (Power Division), in a letter on November 27, 2023 had suggested amendments in Consumer Service Manual (CSM) and other relevant applicable documents regarding urgent fee for new electricity connection, revision of security deposit rates and increasing the temporary connections tariff rates.

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According to a letter written by Director Registrar, NEPRA, the Authority considered the matter of provision of connection on urgent fee basis and in this regard, a public hearing has already been held on December 19,2023 for amendments in Consumer Service Manual (CSM).

Moreover, regarding revision of security deposit rates and increase in tariff rates for temporary connections Ministry of Energy (Power Division) has been requested to direct the DISCOS to file petitions for determination of security deposit rates and enhancement in tariff rates for temporary deliberation by the Authority.

On December 19, 2023 NEPRA while hearing the amendments in the Consumer Services Manual was of the view that consumers have no faith in the power sector, and the way Discos are functioning the power sector will not survive for long.

Serious concerns were expressed by the stakeholders including the regulator over Discos’ petitions to allow them to increase the installation fee of urgent electricity meters to Rs15,000 for a single-phase meter and Rs30,000 for a three-phase meter.

The NEPRA and stakeholders expressed strong reservations at the proposal and the authority sought details of pending connections.

Nepra also wanted to know as to why the meters were not installed by the Discos within the prescribed timeframe after it was informed that pending applications of new electricity meters have accumulated to 119,000 in the last 30 days - and this does not include previous pendency.

On the issue of CSM, the authority remarked that instead of increasing charges for urgent meter fee the Discos should increase consumption of electricity.

Copyright Business Recorder, 2024