Nepra yet to announce new date for hearing

MUSHTAQ GHUMMAN

ISLAMABAD: National Electric Power Regulatory Authority (Nepra) has not announced any new date for hearing of a petition filed by Central Power Purchasing Agency (CPPA) to return Rs 3.20 per unit to the consumers overbilled to them in December under the garb of fuel price mechanism, well-informed sources told Business Recorder.

Earlier, the regulator was due to hear CPPA petition on January 29, 2015 but the government forced the Authority to cancel public hearing at a time when talks are under way with the IMF for sixth review in Dubai.

Though, Nepra officials remain tight-lipped on this development, insiders claimed that the government has pressurized the Authority to impose Rs 1.50 per unit surcharge so that the consumers are returned only Rs 1.70 per unit for December 2014 under monthly Fuel Price Adjustment (FPA) mechanism, the sources maintained.

If Nepra approves CPPA petition, Discos will have to return Rs 20 billion to consumers except lifeline consumers overbilled in December 2014.

The regulator maintains that Nepra Act does not allow it to impose any surcharge on its own as any such measure can only be taken by the GoP.

One of the power sector experts stated that it is wrong to say that tariff is being reduced or slashed under monthly fuel price adjustment mechanism. "Revision of tariff under FPA mechanism means Discos will return the amount overbilled to the consumer in a specific month or will further charge them for spending more on fuel," he added.

Nepra officials are unaware about new date of hearing on the petition of CPPA pending with the Authority.

"I am not sure the Authority will hear CPPA petition next week because it is mandatory to give an advertisement in the press three or four days prior to public hearing," said an official on condition of anonymity.

Insiders claim that the newly appointed Chairman Nepra gave assurance to the interview committee headed by Finance Minister Ishaq Dar that he will implement all policy guidelines of the government.

The CPPA submits tariff petitions under monthly fuel adjustment mechanism on 10th or 11th of each month and it is expected that the petition for January 2015 will be filed in the second week of February. Some officials say that the Authority may club the two petitions together; however, officially it could not be confirmed.