The National Electric Power Regulatory Authority (NEPRA) has raised serious concerns over the country’s growing potential, one of them is a major reason behind steep electricity prices.
During a public hearing on petitions filed for the use of system charges (UOSC) by 11 distribution companies (Disco) on Thursday, NEPRA Member (Technical) Rafiq Ahmad Sheikh remarked that in the current situation, “only one miracle” can reduce allegations.
The hearing, chaired by NEPRA Chairman Wasim Mukhtar, was also attended by Member (Law) Amina Ahmed and Member (Development) Maxod Anwar Khan. Government representatives, including PPMC Managing Director Mehfoz Bhatti, have been on average on wheel charges. 800 MW of Power Auction Plan outline. With 12.55/kW, a maximum limit or 1 MW.
The GEPCO team presented several models to launch the Competitive Trading Mutual Agreement Market (CTBCM), including the hybrid system. However, NEPRA members expressed concerns, highlighting the absence of an approved standard cost framework, which is a prerequisite for moving forward.
The regulator emphasized that it can only approve the grid charges, not the standard costs, unless the government presents the desired framework. Officials made it clear that industrial consumers are already charged under a two -party tariff system, and a hybrid model that will look into the charges of Volometric (KWH) and capacity (KW/Month).
Industry stakeholders, including the Karachi Chamber of Commerce and Industry (KCCI), criticized the requests, warning that high wheels and system compensation would damage industrial competitiveness and threaten to put more pressure on groups of specific consumer. KCCI’s Tanveer Barry argued that such costs could damage exports and demand more transparent and equal framework.
The NPRA noted that according to the National Power Plant 2023-27, the proposed USC/grid charges have been excluded capacity compensation, but it has admitted that the lack of rehabilitation and the defect is continuing to increase these costs.