ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved two distinct tariffs for the cold storage industry, depending on the nature of their business activities. The decision follows a prolonged legal dispute involving courts and government ministries.
To address inconsistencies in the billing practices of XW-DISCOs for cold storage facilities, Nepra, through a determination dated June 2, 2022, had initially placed cold storage facilities under the “Commercial Tariff” category. This categorization was officially notified by the Federal Government on July 25, 2022.
Subsequently, several cold storage operators filed complaints and representations before Nepra, challenging the imposition of commercial tariffs. They argued that the change significantly increased their billing and operational costs and requested the application of industrial tariffs instead.
‘Nepra is delaying MLR on cold storage tariff decision’
In response to these concerns, Nepra held a public hearing on June 6, 2023. The hearing was attended by various stakeholders, including representatives from distribution companies (DISCOs) and the All Pakistan Cold Storage Association.
Meanwhile, multiple industrial consumers also challenged Nepra’s determination — both regarding Fuel Price Adjustment (FCA) and the cold storage decision — before the Lahore High Court in case WP No. 50725 of 2022, titled Muhammad Azhar Siddique vs. Federation of Pakistan, et al. In a judgment dated February 6, 2023, the Lahore High Court directed Nepra “not to unilaterally change the type of tariff from industrial to commercial without hearing such consumers.”
This judgment was subsequently challenged in the Supreme Court. The apex court remanded the matter to Nepra with directions that the Authority should decide the issue independently, “without being influenced by anything stated in the impugned judgment.”
Both Nepra and the DISCOs stated they had no objection to this approach.
The matter underwent several rounds of deliberations within ministries and related forums. Dissatisfied with Nepra’s earlier stance, the following stakeholders filed motions for leave to review (MLRs) under the Nepra (Review Procedure) Regulations, 2009: (i) M/s ECKO Warehousing & Logistics; (ii) M/s Glaciers (Private) Limited; (iii) M/s Connect Logistics; and (iv) Muhammad Arif Bilwani.
After a lengthy delay and multiple requests from petitioners, Nepra has now issued its final determination, distinguishing two categories within the cold storage industry; (i) industrial Tariff– For cold storages involved in processing, value addition, and long-term preservation of goods, particularly in sectors such as agriculture, food processing, and pharmaceuticals; and (ii) Commercial Tariff – For cold storages handling short-term storage for retail and distribution, without significant value addition.
In an additional note, Member (Law) Amina Ahmed expressed concern over potential ambiguity in the decision, stating, “There is ample room for ambiguity and inconsistent interpretation, which may result in arbitrary application across different cases. This, to my mind, is not only undesirable and counterproductive but also a recipe for precipitating future conflicts and disputes.”
Copyright Business Recorder, 2025
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