Consumer Rights Commission of Pakistan (CRCP) is of the opinion that privatization of distribution of electricity is likely to make the consumers more vulnerable, if appropriate steps are not taken while promulgating performance standards for distribution companies (DISCOS). While representing the interests of power consumers in general and domestic consumers in particular, CRCP suggests the following points to be considered before the enactment of Performance Standards (Distribution) Rules:

1. Part II of these rules deals with Guaranteed Standards of Performance. Rule 3 says that a Disco shall implement Guaranteed Standards of performance for each and every individual consumer. Consumers of various categories like agriculture, commercial, industrial or domestic pay tariff according to their category irrespective of being rural or urban. Consumers from rural area should be treated in same way as urban consumer due to having same criterion of tariff. While Rule 3.1, 3.3, 3.5 and 5.3 are discriminatory in this respect adopting different parameters for rural and urban consumers in provision of guaranteed standards for restoration of un-planned and unscheduled interruptions, duration of unplanned supply interruptions, duration of planned supply interruption and time frame for new connection.

1.1 Rule 3.1 says that the duration for restoration of un-planned and unscheduled interruptions will be 10 hours for urban and 16 hours for rural consumers.

1.2 Rule 3.3 says that the duration of unplanned supply interruptions will be 88 hours in urban and 175 hours in rural area per annum for 400/230 volts.

1.3 Rule 3.5 express that the duration of planned supply interruption will be 60 hours in urban and 72 hours in rural area for 400/230 volts.

1.4 Rule 5.3 says that the time frame for new connections will be 35 hour in urban and 45 hour in rural area in case of supply at the voltage level up to 400V and load up to 15 kW.

CRCP believes that such big difference between urban and rural consumers is undesirable. Given the fact that infrastructure of communication through out the country has developed to great extent, this difference of rural and urban does not seem to be realistic. CRCP understands that this difference may be reduced and it should be mandatory on the Discos to eliminate this difference within the period of two or three years.

2. The numbers and durations of interruptions given in Rule 3 and its sub rules are not realistic and exorbitant and need further deliberation to bring down to the acceptable limits. The provisions should also make difference between the durations of interruptions for minor and major problems occurred in the system because sometime the problem may be solved within very short period of time keeping in view the nature of the problem.

3. Rule 9 deals with the suo-moto power of authority to monitor periodically the compliance of the Rules by Discos and to require their performance audit. The Rule also provides penalty up to three hundred thousand Rupees for non-compliance of theses rules if the case is not dealt with in accordance with Rule 4. CRCP appreciates the authority on the introduction of such provisions in performance standards, which also provide a suitable formula for calculation of fine.

4. Rule 4 provides the penalties payable to affected consumers in case of non-compliance of Rule 3.1, Rule 3.2 and Rule 3.5 by Disco. Infliction of penalties and fines on a person acting not in accordance with the requirements is necessary to make him responsible of his duties. A public sector like electric power is one of the major service providers to the public. Infliction of penalties on negligence and carelessness is one of the important steps to make that department more efficient. CRCP is of the view that word compensation would be more suitable in rule 4 and 6.2.5 than penalties. The Rule does not provide any procedure for the operation of penalties. CRCP suggests that the penalties should also be for non-compliance of Rule 3.3 and Rule 3.4, which deal with duration of unplanned supply interruptions and maximum number of planned, respectively. Exclusion of these rules from the operation of Rule 4 shall make it not much effective. CRCP is of opinion that that formula adopted in Rule 9 may also be adopted in Rule 4 while calculating the penalties.

5. Rule 5.7, which deals with the safety standards, is much restrictive and narrow in the sense that it does not provides any standard for the transmission lines from the service providers to consumers. It is also restrictive with regard to the distance of high-tension transmission lines from the residential area. The rule does not provide for any compensation to the person affected due to failure of utility to comply with the safety standards. The rule is silent in case of personal injury or loss of life caused to any person due to non-compliance of these safety standards by Disco. The Rule needs details and elaborations to become more effective and dynamic. There is also need to add the word "environment" after "any harm to human life and property". CRCP believes that the provisions regarding environment and safety standards should be so comprehensive that it may cover all the possible areas of its operation. To fulfill the requirements of environmental issues CRCP suggests that a complete and comprehensive rule should be made part of these rules.

6. Rule 5.6 describes the priorities and principles of load shedding. It says that a Disco shall prepare schedules of disconnection, which demonstrate this priority order and which rotate disconnection between rural, urban, industrial and commercial consumers and defense installations. CRCP believes that the rotation between rural, urban, industrial and commercial consumers is possible but the inclusion of defense installation is un-understandable. CRCP thinks that this needs further deliberation and discussion.

7. Rule 7 of Part IV provides the provisions for resolution of metering disputes. Meter reading error is a very common problem being faced by the consumers of electricity. The provisions in Rule 7 regarding the metering disputes and reading errors are not covering all possible areas of these problems. CRCP suggest that, while finalizing the rules, the Authority must take into account such common problems faced by the consumers and make the provisions so comprehensive that it may cover all possible areas. Power Distribution companies are in habit of sending the "disputed amount" in the arrears of forth coming bill. This situation compels the consumers to pay whole amount including disputed amount of bill without any decision regarding the disputed amount. Non-payment of the bill results in disconnection of electricity. CRCP is of the view that a separate provision should be added after rule 7, which should contain "The disputed amount should not be included as arrears in forth coming bill until the matter is resolved" or similar to this idea.

8. CRCP understands that the definitions given in Rule 2 are outdated with regard to rural and urban areas. Keeping in view the recently implemented formula for devolution of power, rule (l) and (m) need to be redefined. "Consumer" in "c" "d" of the definition clause should replace the word "customer".

9. Rule 1, sub rule 2 says that the Rule 4 and 6.2.5 shall come into force after two years of the notification of these Rules in Official Gazette. CRCP believes that this period is too extensive and needs to be reduced.

10. CRCP expresses that the Discos should be required to make their performance reports and plans publicly available.