In an apparent snub to the government, the National Electric Power Regulatory Authority (Nepra) has rejected requests by power distribution companies to recover more than Rs35 billion from consumers on account of additional system losses.
The decision has come on review petitions of Lahore, Quetta, Multan and Hyderabad electric supply companies (Lesco, Qesco, Mepco and Hesco) and sets aside a government decision to allow recovery of loans and the resultant mark-up from consumers along with the cost of higher system losses — both resulting from inefficiencies of the companies.
In its review petition, Hesco had demanded that consumers be charged for 23 per cent transmission and distribution (T&D) losses instead of 15pc permitted by Nepra. Lesco had requested Nepra to allow 13.2pc T&D losses in consumer tariff, instead of 9.8pc.
Likewise, Qesco had sought 18pc losses in power tariff, instead of 15pc allowed by Nepra while Mepco had demanded higher revenue on account of wheeling charges, distribution margin, increase in cost of Wapda pensioners and sales mix.
One per cent change in T&D losses works out to about Rs7bn if the current average consumer tariff is taken into account.
