AGL 39.45 Increased By ▲ 1.73 (4.59%)
AIRLINK 176.22 Increased By ▲ 7.57 (4.49%)
BOP 10.09 Increased By ▲ 1.00 (11%)
CNERGY 6.85 No Change ▼ 0.00 (0%)
DCL 9.92 Decreased By ▼ -0.13 (-1.29%)
DFML 42.77 Increased By ▲ 2.13 (5.24%)
DGKC 98.70 Increased By ▲ 5.46 (5.86%)
FCCL 39.31 Increased By ▲ 1.39 (3.67%)
FFBL 82.00 Increased By ▲ 3.28 (4.17%)
FFL 14.35 Increased By ▲ 0.89 (6.61%)
HUBC 121.35 Increased By ▲ 7.25 (6.35%)
HUMNL 15.40 Increased By ▲ 0.45 (3.01%)
KEL 5.65 Decreased By ▼ -0.10 (-1.74%)
KOSM 8.18 Decreased By ▼ -0.05 (-0.61%)
MLCF 48.29 Increased By ▲ 2.80 (6.16%)
NBP 75.70 Increased By ▲ 0.78 (1.04%)
OGDC 197.60 Increased By ▲ 4.67 (2.42%)
PAEL 32.10 Decreased By ▼ -0.14 (-0.43%)
PIBTL 8.14 Decreased By ▼ -0.43 (-5.02%)
PPL 176.50 Increased By ▲ 9.12 (5.45%)
PRL 34.11 Increased By ▲ 3.10 (10%)
PTC 22.55 Increased By ▲ 0.47 (2.13%)
SEARL 103.10 Increased By ▲ 2.27 (2.25%)
TELE 8.49 Increased By ▲ 0.04 (0.47%)
TOMCL 35.10 Increased By ▲ 0.26 (0.75%)
TPLP 11.25 Increased By ▲ 0.01 (0.09%)
TREET 19.26 Increased By ▲ 0.63 (3.38%)
TRG 58.30 Decreased By ▼ -2.44 (-4.02%)
UNITY 34.97 Increased By ▲ 2.99 (9.35%)
WTL 1.60 Decreased By ▼ -0.01 (-0.62%)
BR100 11,661 Increased By 372 (3.3%)
BR30 35,444 Increased By 1304 (3.82%)
KSE100 108,275 Increased By 3171.1 (3.02%)
KSE30 33,706 Increased By 1152.1 (3.54%)

ISLAMABAD: The Federal government is likely to commence rebasing of electricity tariffs from January 1 each year instead of July 1, aimed at shifting financial shocks on consumers in winter when consumption and bills are lower than in the summer months, well informed sources in Finance Ministry told Business Recorder.

Finance Ministry, has conveyed no objection to the proposal of Power Division on the understanding that it has no financial/ subsidy implications.

However, Finance Division has proposed to the Power Division to consider discussing the proposal with the development partners; i.e., International Monetary Fund (IMF), World Bank and Asian Development Bank (ADB), as part of reform initiatives, before its submission to the ECC, the sources added.

PM says power tariffs to be revised downward soon

National Electric Power Regulatory Authority (Nepra) determines the consumer-end tariff for the Distribution Companies (Discos) and K-Electric as per Section 31 of the Regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Act, 2021 read with Rule 17 of the Nepra (Tariff Standards and Procedure) Rules, 1998. The latest uniform tariff was duly notified by the Federal Government vide SRO No. 1039(I)/2024 on July 14, 2024.

In accordance with the Nepra (Tariff Standards and Procedure) Rules, 1998 read with Part 5 of the NEPRA Determination of Consumer-end Tariff (Methodology & Process) Guidelines, 2015, Discos are required to initiate the tariff determination process by submitting their minimum filing requirements by January 31 of each year.

The submission is followed by Authority’s internal meetings, public hearing, tariff determination and notification by the Government. Keeping in view the recent annual tariff determinations, the rebasing has been notified by the Government in the month of July each year with effect from 1st of July.

However, it is an unfortunate coincidence that consumers faced high Fuel Charges Adjustments (FCAs) as well as the annual tariff rebasing simultaneously in the summer months, the sources quoted Power Division is admitting in their proposal.

The Power Division has also acknowledged that this increase in tariff coupled with higher consumption leads to significant hike in the consumer electricity bills in the summer months which, in turn, results in public dissatisfaction and nation-wide protests in the country.

Power Division is of the view that the issue can be streamlined if the timing of annual rebasistable and sustainable electricity prices throughout the year.

The National Electricity Plan Strategic Directive 8 stipulates that the Regulator shall also revisit the “Guidelines for Determination of Consumer End Tariff (Methodology and Process), 2015” to enable alignment of schedule of regulatory proceedings for planning activities and rate and tariff determinations.

After explaining the background of the proposal, Power Division has sought approval from the Economic Coordination Committee (ECC) of the Cabinet on the following: (i) Policy guidelines may be issued to Nepra to revise the annual tariff determination process timelines by amending the relevant legal and regulatory framework in a way that the rebasing is notified with effect from January 1 each year, after completion of all regulatory proceedings ;and (ii) Power Division may be authorized to approach Nepra, for implementation of these Policy Guidelines.

Copyright Business Recorder, 2024

Comments

Comments are closed.

Imran Malik Oct 05, 2024 08:48am
It is start of another chapter in greek tragedy. NEPRA , DISCOs and Bureaucrats going to heap their inefficiency and protecting the corrupt practices at the start of the every year on public.
thumb_up Recommended (0)
Rashid Nazeer Oct 05, 2024 09:26am
1 nation 1 policy -- Awam ko mando
thumb_up Recommended (0)
Maqbool Oct 05, 2024 03:21pm
Stop electricity thieft and reduce bajli prices
thumb_up Recommended (0)
Waheed ud din Oct 05, 2024 06:49pm
Will it really impact the actual situation? Do some thing positive which can impact the situation. Concentrate on zero theft achievement. Make govt. Offices pay their bills.
thumb_up Recommended (0)
Ijaz Ali Oct 05, 2024 08:53pm
There is no such thing as policy and procedures and guidelines in Pakistan, whatever the politicians wants they do it, NEPRA have no power at all
thumb_up Recommended (0)
Mahboob elahi Oct 06, 2024 12:38am
Regulator clueless and consumers Penniless....buracracy zindabaad
thumb_up Recommended (0)
MIAN IMRAN Oct 06, 2024 07:01pm
I think Pakistani bureaucrats are should change their attitude and help and serve the poor nation without any personal interests
thumb_up Recommended (0)