Sources told Business Recorder here on Monday that the Discos have filed petitions with the Nepra against the cut in electricity tariff, which is not yet effective due to non-issuance of notification.
According to sources, Faisalabad Electric Supply Company (Fesco), which is a profit making entity, was second in the race after Islamabad Electric Supply Company (Iesco) to challenge Nepra's decision.
Sources said that Nepra has decided to categorise the appeals for hearing. The date for hearing is yet to be determined.
In their separate but 'almost identical' petitions, the Discos have pleaded that Nepra had announced the revised tariff package without examining the revenue/line losses of the companies.
"It is not possible for us to accept Nepra's package as we have to face huge losses after implementation of new tariff," said one of the Discos in its petition.
This decision was unexpected and sudden, said the Discos. Pesco said in the petition that it had already asked for tariff enhancement up to Rs 5.71/kwh to overcome the revenue shortfall.
The line losses of the Pesco have reached up to 23 percent due to which the company is undergoing Rs 3.5 billion revenue deficit per year. The downward revision of the electric power tariff, if materialised, Pesco may face a loss of Rs 5 billion a year, the petition said.
Routine power theft cases in Federally Administered Tribal Areas (Fata) and the NWFP are the major factors contributing to huge losses of the company.
Sources said that Fesco's review application might be disposed of in the first instance for the company is a profit making entity.
The Authority is of the view that since the company is making profit, the disposition of its appeal would not take long.
The review applications of the remaining seven companies are to be put in one or two categories to swiftly and judiciously take a final decision on the tariff revision.