Economics & Business Politics

NEPRA further increases power tariff-PEPCO dissolved

ISLAMABAD: Amid spiraling prices of daily use commodities, the National Electric Power Regulatory Authority (NEPRA) has further increased power tariff by two per cent for eight distribution companies including Karachi Electric Supply Company (KESC) with immediate effect from Friday.

As per details, the NEPRA has reviewed the tariff for the fourth quarter of 2009-10 in exercise of powers conferred by Sub-section-4 of Section-31 of the Regulation of Generation, Transmission and Distribution of Electric Power Act 1997, said a notification issued here. NEPRA’S quarterly determination for fourth quarter 2009 – 2010 is on higher side when compared with government levied tariff for all sets of consumers.

In order to reduce the gap between NEPRA’S determined tariff and consumer’s-end tariff, the government has decided to maintain a balance in public interest and to pass on only 2 per cent revision in power tariff. The government therefore notified 2 per cent upward revision in power tariff across the board for all categories of consumers in PEPCO’S eight Distribution Companies and KESC, it is learnt.

It may be noted that in order to make power sector solvent, financially viable and able to serve the public, the government has notified the said tariff increase to be made from October 1. It is informed that these increases usually are determined after power generation companies file a request for revision in the tariff position which are normally heard and disposed off (by Nepra) through public hearings.

Furthermore Federal Minister of Electricity and Water Raja Pervez Ashraf announced the dissolution of Pakistan Electric Power Company (PEPCO) on Monday. During a press conference on Friday, Mr. Raja announced to dissolve PEPCO and added that eight distribution companies will be independent. He said that these private distribution companies will be responsible within their jurisdictions. Government wishes to resolve electricity problem on permanent basis.-SANA

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Haroon Akram Gill

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