Consumers Expect Relief in Review of Power Tariff Raise by NEPRA

July 23, 2002

Islamabad:Consumer Rights Commission of Pakistan (CRCP) has welcomed the president's move of directing WAPDA to put on hold the implementation of recent average increase of 40 paisa per unit in power tariff. However, implementation of the decision has temporarily been put on hold and still consumers have to wait for the final decision after review by NEPRA. "Despite this, the president's order has enraptured consumers who are expecting a relief in review of power tariff raise by NEPRA," CRCP said. The decision needed to be reviewed because the government pressure had influenced the decision of power tariff raised by NEPRA. Given CRCP's engagements with the government in a legal manner, and public pressure, the government has directed WAPDA not to implement the NEPRA's decision, it said. Under section 31(4) of the Nepra Act 1997, Federal Government can refer back a decision of NEPRA regarding tariff, charges, rates and other terms and condition for review. Furthermore, under Tariff Standards and Procedural Rules, 1998, section 16 CRCP itself is taking up the issue with NEPRA for review by the full strength of the Authority.

CRCP secretary general Mian Abrar Hafeez told that it was for the second time that CRCP efforts had successfully prevented WAPDA from passing on the cost of its inefficiencies to consumers and reap profit on unjustified basis. CRCP had pleaded against WAPDA's petition for 98 paisa per unit raise in electricity tariff in June 2001 resulting in dismissal of the petition by NEPRA. In the recent petition filed by WAPDA for 88 paisa per unit, CRCP intervened in the tariff determination proceedings of NEPRA, and pleaded the case for the rejection of WAPDA's petition. However, later on it was learnt that Ministry of Finance had pressurized NEPRA to allow 58 paisas per unit increase in power tariff in view of the commitments made by the Ministry with the international lending agencies. Since NEPRA had been exposed to pressure by the government, CRCP took up the issue with the concerned quarters pleading that any intervention by the government or its agencies in tariff related matters is against the spirit and letter of the NEPRA Act, 1997.