ISLAMABAD: The Ministry of Water and Power on Tuesday formally barred power distribution companies (Discos) from collecting fuel price adjustment charges of four months (October-January) amounting to billions of rupees till a viable collection mechanism is finalised, official sources told Business Recorder.
On March 20, National Electric Power Regulatory Authority (Nepra) approved Rs 6.39 per unit increase in power tariff of the distribution companies for last four months under monthly fuel price adjustment formula.
This includes Rs 2.22 per unit for October 2011, Rs 1.27 per unit for November 2011, Rs 0.94 per unit for December 2011 and Rs 1.96 per unit for January 2012.
The Central Power Purchasing Agency (CPPA) during the hearing argued that in October 2011 a total 7.774 billion units of electricity were sold by the power distribution companies, in November 6.849 billion units, in December 6.491 billion units and in January 2012 these companies sold 6.01 billion units.
The CPPA stated that actual cost of producing electricity per unit in October was Rs 6.95, in November Rs 6.32, in December Rs 7.26 and in January Rs 9.28 per unit.
On Monday, Minister for Water and Power, Syed Naveed Qamar announced that collection of fuel adjustment charges on electricity bills is being deferred and advised the consumers not to pay for the time being.
On Tuesday, Ministry of Water and Power, wrote a letter to the Managing Director National Transmission and Dispatch Company (NTDC), Chief Financial Officer (CFO), Pakistan Electric Power Company (Pepco) and Chief Executives Officers (CEOs) of all the Discos instructing them formally to defer collection.
“I am directed to refer to the recent fuel price adjustment determinations of Nepra for the months of October, November and December 2011 and January 2012 and to say that charging of fuel adjustment charges in the electricity bills should be withheld until a suitable mechanism is evolved to recover it from the consumers,” said Deputy Secretary of Water and Power Ministry in a directive sent to the CEOs.
Discos have also been directed to ensure strict compliance of the directive issued with the formal approval of competent authority.
The Ministry of Water and Power has held Nepra responsible for this situation as the latter failed to determine fuel adjustment charges for each month.
Naveed Qamar argued that Nepra has not determined fuel adjustment surcharge for the last five months and now the entire backlog was being passed on to the consumers in the latest electricity bills.
A parliamentary committee comprising both the treasury and opposition benches will evolve new collection mechanism.-MUSHTAQ GHUMMAN
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