ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Tuesday showed reluctance to approve the heavy cost of Use of System Charges (UoSC)/wheeling charges to power Distribution Companies (Discos).
The Authority comprising Nepra Chairman Waseem Mukhtar, Member (Technical) Sindh Rafique Ahmad Shaikh, Member (Tariff and Finance) Mathar Niaz Rana, Member KPK Maqsood Anwar Khan and Member (Law) Amina Ahmed officiated a public hearing.
Private sector including All Pakistan Textile Mills Association (APTMA) opposed heavy charges in the name of system charges.
The representatives of Discos led by Gujranwala Electric Power Company (Gepco) shared their plan to recover UoSC charges/wheeling charges from consumers of Discos who will use their systems. Discos gave references of different clauses of laws and National Energy Policy.
Market operator, Central Power Purchasing Agency–Guaranteed (CPPA-G) argued that if 16% of consumers shift to wholesale, the burden falls on the rest.
“In case one user exits, it makes a difference of Rs 27 per unit of revenue. If 16 percent bulk customers leave the difference will be Rs 544 billion annually on the revenue,” said CPPA-G.
CPPA-G maintained that other c will have to pay an additional Rs.6 per unit to close the gap, adding that consumers already burdened with expensive electricity cannot bear the burden any more.
Private sector maintained that the cost of inefficiencies cannot be exported as the proposed UoSC will also raise the cost of import substitution industry and disable them from competing with imported items.
The industry proposed that UoSC charges should be a maximum of 2 cents per unit and both export industry or import substitution industry should be provided a level playing field. Different industries must not be treated differently.
Copyright Business Recorder, 2023