Discos send inflated bills

MUSHTAQ GHUMMAN

ISLAMABAD: Power Distribution Companies (Discos) with a view to showing reduction in losses have reportedly sent inflated bills, well-informed sources told Business Recorder.

Discos have sent extra reading over and above the consumed units which is the main reason for the inflated bills, the sources added.

The government has also shown improved recoveries by withdrawing Rs1.30 per unit subsidy for those consumers using 200-300 units in a month as per agreement with the International Monetary Fund (IMF).

Unconfirmed reports indicated that the government has increased power tariff by Rs1.30 per unit for those consumers using 200-300 units monthly which implies the slab benefit is no longer available to that category of consumers. Another official hinted that Ministry of Finance might have shown the notification of Rs1.30 per unit increase to the IMF at a meeting in Dubai as the officials of Water and Power Ministry did not attend the meeting with the Fund.

Government has done away with slabs implying that the benefits associated with the slabs previously available to consumers have been withdrawn. Earlier, consumers enjoyed the following categories of slabs: (i) 0-50; (ii) 0-100; (iii) 101- 300; and (iv) 700 and above. At present, if a client uses 700 units a month, he is liable to pay the entire bill in accordance with slab of 700 units and will not be entitled to the benefit of lower slabs.

Power sector consumers across Pakistan have complained about massive billing for the month past, but Discos and the Ministry of Water and Power have not come forward to clarify the reasons behind the almost doubling of bills.

The sources said Water and Power Ministry dominated by District Management Group (DMG), now Pakistan Administrative Services (PAS), in consultation with Economic Reforms Unit (ERU) of the Ministry of Finance had prepared a summary to increase power tariff by Rs1.30 per unit for domestic consumers using 200-300 units and Rs2.50 per unit for agriculture tube-wells. However, the summary was not submitted to the Economic Co-ordination Committee (ECC) of the Cabinet as it was feared that any rise in tariff would fuel public discontent, thereby strengthening support for PTI’s million march.

The government has withdrawn subsidy available to consumers who use 200-300 units monthly secretly, the source added. Ministry of Water and Power spokesman was not available for comments.

National Electric Power Regulatory Authority (Nepra) has also finalised the FY 2013/14 determination of electricity tariffs expected to be notified during the current month. Tariff adjustment is expected to reduce electricity subsidies to 0.5 percent of GDP in FY 2014/15 from around one per cent during the previous year. 

The sources said preparations are also underway for a multi-year tariff framework which, according to the Fund, is critical for eventually reaching full cost recovery. 

According to analysts, performance of power sector has not improved despite the fact that control of entire power sector is in the hands of DMG officers who are very close to Secretary Water and Power, Mrs Nargis Sethi.

Recovery of power sector receivables has declined to about 80 per cent in July against billing of more than 100 per cent which reflected continued poor performance of the incumbent power sector team, analysts added.