ISLAMABAD: Under the newly introduced two-part tariff system, Wapda’s power distribution companies (Discos) have decided to file fresh petitions for an increase in tariff.
Under the amended Nepra Act (Regulation of Electrical Power Generation, Transmission and Distribution Act), power companies are required to submit separate tariff petitions for electricity supply and production.
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Section 23E of the Nepra Act now enables that “power supply” licenses will perform the function of selling electricity and that “distribution” licenses under Section 20 be restricted to owning, operating, managing and controlling production services for the movement of supply to potential customers.
By the process of Section 23(E), Discos are currently considered to possess a control license. As such, all non-sale service category components (installation, acquisition, operating maintenance and distribution network control) are now part of the distribution license.
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Although, the government is committed to eliminate gaps in tariff changes with the International Monetary Fund, and to re-introduce government powers to implement tariff surcharges “over and above the system’s need” to fund the Rs110 billion annual financing costs of over Rs1.7 trillion circular debt.
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