News

February 27 , 2017

Discos collect Rs125 bn extra from consumers in two years

Ministry spokesman says matter is in court

ISLAMABAD: The electric power distribution companies (Discos) have swindled a mammoth amount of Rs125 billion from the end consumers in the last two financial years 2014-15 and 2015-16 just because of the non-issuance of the notification of the tariff determined by National Electricity Power Regulatory Authority (Nepra).

Nepra had determined the electricity tariff at Rs10.90 per unit for 2015-16 based on year-on-year adjustment, but the government continued charging Rs12.33 per unit showing that it has been charging Rs1.43 per unit more from the consumers in the whole 2015-16, reveals the official documents available with The News.

The government has not so far issued the notification of the tariff owing to which the power distribution companies have made the huge amount of Rs125 billion. The documents showing the bleak picture of power sector scenario further unfold that the consumers have been deprived of Rs65 billion in 2015-16 and Rs60 billion in 2014-15 meaning by that Discos have fleeced Rs125 billion from consumers in last two financial years.

Documents also reveal that the regulator has been agitating since long the issue with top mandarins of the government asking for ensuring the relief of Rs125 billion to the consumers that has been denied because of the non-issuance of notification.

A Ministry of Water and Power spokesman says DISCOS have challenged the tariff in the court of law as according to them it is inadequate and does not cover the actual losses. So saying that the DISCOS have swindled the end consumers carries no weight and this will be decided after the court will give the verdict, he said.

The ongoing tension between Nepra and the government, however, may touch new high for the delay from Discos in submitting the yearly petitions seeking the tariff for 2016-17 fearing if the regulator will mop up the illegal benefit of Rs125 billion they gathered for not reducing the tariff.

However, the official documents also pinpointed the inefficiency of the Discos just in the heads of recovery causing the colossal loss of Rs105 to power sector in 2015-16 that has appeared in the shape of more surge in circular debt by whopping Rs105 billion. In the head of recovery, the power sector sustained loss of Rs68 billion and Rs37 billion jerk on account of transmission and distribution losses.

According to the claim of the government mentioned in the documents, the line losses stand at 18.9 percent out of which 15.2 percent losses are permissible. The government says that recovery has improved up to 93 percent owing to which the losses have dwindled by one percent from 18.9 per cent to 17.9 percent. This means that the gap still exists at 2.7 percent showing that the system is braving the loss of Rs37 billion. One percent line loss means the Rs13 billion loss to the system.

The end consumers in their electricity bills pay the cost of Rs15.2 percent amounting to Rs197 billion every year. More importantly 2.7 percent loss (Rs37 billion) are also added to the circular debt.

 

Courtesy www.thenews.com.pk


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