ISLAMABAD-Strongly rejecting the counter narrative of the Ministry of Energy on overbilling report, Nepra has said that the regulator’s findings are based on the data provided by the power distribution companies (Discos) and all of them have acknowledged that overbilling was done.
In a public hearing on amendment in Consumer Service Manual, the stakeholders have rejected the proposed amendments in the CSM including, urgent fee of Rs15000 to Rs30000 for new meter, compound interest of 14 percent on installments of bills, restrictions and penalties on multiple connections at one premises and higher penalties on detection bills that are issued by Discos for suspicious consumption like a slow meter, a defective meter, theft, etc. The Power Division termed the statistics quoted in the Nepra inquiry report on the inflated electricity bills in July and August false and exaggerated.
The hearing was presided over by Chairman Nepra, Waseem Mukhtar, and was attended by all the members of the authority.
It has been proposed in the CSM that consumers seeking priority connections will now face an ‘urgent fee’ of Rs15,000 for single-phase and Rs30,000 for three-phase meters. Currently, new connections should be provided to these categories within 30 days against payment of Rs8,500 to Rs11,500 for a single-phase meter involving 20- to 40-meter cable and from Rs36,500 to Rs50,000 for a three-phase meter. Official of the Power Division informed that the new fee for urgent meter will not be a security deposit or cost of the meter, as it will be the income of the Discos.
The regulator asked that how many days does a new normal electricity connection take? Official of the Power Division said that connection is being provided within 30 days. However, the authority was of the view that if the new proposed urgent fee is allowed, then the connection of regular consumers will be further delayed. Member Nepra Rafiq Ahmad Shaikh asked the official of the Power Division, why don’t you improve the existing system?
Member Balochistan Mathar Niaz Rana, while commenting on the proposed urgent fee, said that Discos are losing consumers and most of them are going off grid. “In next five years you will not find an electricity buyer as more consumers will go off grid,” he added.
Official of Nepra informed that overall 208007 domestic, commercial and industrial applications for new connections are pending with Discos from over one month to one year. Out of it 190,000 connections are delayed for more than a month, more than 55,000 connections have been delayed for two months, 31,000 more than for three months, 1485 connections have been in delayed for more than six months, while the remaining are pending for over a year. Official of the Power Division said that the delay in connections was due to procurement of the material due to LC crises. The regulator asked that if you have problems in getting the material for the meter of normal new connections, how you will ensure the supply of meters to those who are paying urgent fee?
The intervener on behalf of the consumers said that the amendment in the CSM was brought by Discos. They want to take money from the people and put it in the pockets of the employees.
Member Sindh Rafiq Shaikh said that you need to give meter free of cost like mobile SIMs, which is the only way to enhance your electricity sale.
He said that if there is a provision for imposition of penalty in the provision of urgent meter, the penalty may also be imposed for the delay of ordinary connection. “If you are willing to impose a penalty on the Disco for not providing new connection within thirty days, we can consider the proposal for urgent fee,” Rafiq Sheikh remarked.
On the issue of overbilling by Discos to millions of consumers detected by Nepra report, Chairman Nepra said the work will continue on the report. Nepra will continue its regulatory process in future as well, the authority said. Nepra’s report on over-billing will go through the regulatory process again, chairman Nepra said.
According to the Nepra report, wrong bills were sent to millions of consumers, however the Power Division has termed the statistics of the report false.
Member Sindh Rafiq Shaikh said that the overbilling report process will not stop. “We have confidence in our team consisting of professionals,” he maintained. All Discos have recognized that overbilling was done, Member Sindh said. None of the CEOs of the Discos challenged Nepra’s data, he claimed.
With the proposed urgent fee, Discos would be required to issue a demand notice the next day and ensure a power connection within two working days after the payment. The failure to install a new connection would require the power distribution company to refund the urgent fee and initiate an unspecified disciplinary action against the official responsible.
The stakeholders also rejected the proposed amendment in CSM relating to the removal of multiple connections and separate electricity meters on residential premises that do not have direct and separate entrances from the main roads. “How is it possible that four brothers living in small house will have four separate entrances from the road,?”a consumers questioned.
Official of the Power Division was of the view that government subsidy is being misused.
Regarding proposed amendment, Rafiq Shaikh was of the view that if this amendment was allowed, quarrels will start between brothers in the house. In my opinion, the way the Discos are working, this system is not going to work, he said while pointing to the low confidence of the consumers and poor performance of Discos.
The other proposed amendment in consumer service manual sought a 14pc interest rate on installments of bills for any reason. As per the proposal there would be no late payment surcharge (LPS) or markup on the first installment if paid within the due date, however the remaining installments would attract an annual markup of 14pc. The intervenor said that consumers are broke due to high electricity bills and the government is proposing to charge interest on the installments as well. The burden on the consumer should be reduced, they said.
Apparently a member of the Authority was favoring the proposed compound interest on the installment, saying the installment of current bill is injustice with Discos.
The consumers have also rejected the proposed higher penalties on detection bills that are issued by power distribution companies (Discos) for suspicious consumption like a slow meter, a defective meter, theft, etc. The consumers were of the view that no theft is possible without the support of the Discos officials.