ISLAMABAD: Nepra, on Friday, initiated an inquiry into the operations of Power Distribution Companies (Discos) due to their continuous requests for unsubstantiated multi-billion rupee claims, expressing concerns over their handling of affairs and the impact on consumers.
Under the Nepra Act, the regulator announced plans to scrutinize the Discos’ activities, intending to summon each CEO after Eid to address technical losses, sales, and other pertinent issues.
This decision came during a public hearing concerning the Central Power Purchasing Agency (CPPA)’s petition for Fuel Price Adjustments (FCA) for January 2024, wherein an additional charge of Rs7.13/unit was requested from power consumers.
Chaired by Nepra Chairman Waseem Mukhtar, alongside members Engineer Maqsood Anwar Khan and Rafique Ahmad Shaikh, the session expressed serious concerns regarding the substantial FCA demands by distribution companies, amounting to a Rs56.6 billion impact on power consumers. Chairman Mukhtar emphasized accountability to the government and the masses, questioning the validity of these claims.
Furthermore, concerns were raised about the Discos’ poor performance and lack of accountability at the Power Division level. The Chairman urged the Power Division officials to convey dissatisfaction with the Discos’ affairs to the incoming power minister.
Emphasizing the need for change in the power sector, Chairman Mukhtar highlighted complaints regarding power connections and directed a zero-tolerance approach towards any failures in providing connections.
Regarding the high FCA requests despite stable fuel prices, Chairman Mukhtar stressed the regulator’s refusal to approve unsubstantiated claims.
The Power Division was urged to develop a viable plan to address the underlying issues causing disruptions, with warnings about the persistence of high prices and demand.
Additionally, a change in protocol was announced, mandating CEOs of Discos to attend meetings in person. This decision followed disappointment with the casual attitude displayed by the Discos during previous hearings.
During the inquiry, Member Nepra Rafique Ahmad Shaikh questioned the petitioner (CPPA) about the substantial claim related to system constraints in the South-North transmission corridor. The petitioner attributed the issue to system stability rather than constraints.
Concerns were also raised about the feasibility of consumers bearing the burden of the Rs7.13/unit claim and the persistence of load shedding in various regions despite apparent demand issues. Shaikh highlighted the substantial backlog of pending power connections in Discos, equivalent to 550MW.
(Islamabad51_Newsdesk)
