Also demand third-party audit of NTDC, NPCC, CPPA-G.

ISLAMABAD   -   Electricity consumers have called for a forensic audit of Independent Power Producers (IPPs) to addaress concerns about over-invoicing, heat rate issues, misstatements, and misreporting.

They also demanded a third-party audit of the National Transmission and Dispatch Company (NTDC), National Power Control Center (NPCC), and Central Power Purchasing Agency (CPPA-G).

During a public hearing organized by the National Electric Power Regulatory Authority (NEPRA) following orders from the Appellate Tribunal and Islamabad High Court, petitioners urged that the burden of multi-billion rupee economic merit order (EMO) violations, incurred from 2021 to 2023, be transferred to the Federal Government instead of consumers.

Chairman NEPRA, Waseem Mukhtar, presided over the hearing, where petitioners criticized the regulator for failing to deduct costs from power generators, which led to increased tariffs for consumers over the past three years. The NEPRA Appellate Tribunal had earlier ordered a fresh hearing on 20 decisions related to monthly and quarterly tariff adjustments, partially overturning NEPRA’s previous rulings on fuel price adjustments (FPA) and quarterly tariff adjustments (QTAs).

The tribunal’s decision, dated February 13, 2024, covered 15 monthly FCAs and five QTAs from 2021 to 2023. The tribunal emphasized the need for a third-party audit of CPPA, NTDC, and NPCC due to alleged non-compliance with merit orders and inefficiencies in power plant operations. The tribunal also highlighted that NEPRA’s decision-making process lacked thorough scrutiny, resulting in significant financial burdens on consumers.

During the hearing, advocates representing various industries expressed dissatisfaction with NEPRA’s handling of EMO violations. Advocate Arslan Riaz from Nishat Mills argued that consumers faced additional costs of Rs. 15-20 billion due to these violations, while Advocate Faisal Zafar from Flying Paper Mills highlighted over-invoicing by IPPs and called for a forensic audit to identify discrepancies.

In response, NEPRA officials defended their procedures, stating that the regulatory body conducts thorough audits and reviews before finalizing tariff adjustments. However, they acknowledged that delays in decision-making have caused frustration among consumers.

NEPRA has reserved its judgment on the matter, with a decision expected to impact future electricity pricing and regulatory practices.