7 per cent raise in power tariff proposed to Nepra

LAHORE-All the eight electricity distribution companies (DISCOs) of Pakistan Electric Power Company (PEPCO) have submitted for 7 per cent increase in the power tariff.
The DISCOs are seeking to increase tariff, believing that the 10 per cent increase was not enough as of now after the steep increase in the fuel prices to meet the financial shortfall, the Ministry of Water and Power sources said.
They said that the Federal govt allowed DISCOs to raise power tariff by 10 per cent on February 24 against the demand of 33 per cent increase, which was applicable for all except the lifeline consumers.
The sources said that the companies accepted the notified tariff but decided to file review petitions to seek additional raise. The decision of the Authority in the consumer-end tariff for the DISCOs also supported the distribution companies to file review petition later.
The sources said that the furnace oil and gas prices have increased by 54 per cent besides a substantial increase in electricity demand particularly by the middle income consumers due to liberal bank loans and rural electrification. However, the consumers are paying much more as compared to the cost of service being provided to them.
The National Electric Regulatory Authority (NEPRA) sources confirmed that the authority did receive the DISCOs review petitions, however, NEPRA officials showed their ignorance. They said that NEPRA had worked out DISCOs tariff on the basis of O&M costs (indigenous and foreign) and return on equity.