Home »Fuel and Energy » Pakistan » Power tariff rise for Lahore, Gujranwala consumers approved

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  • Apr 3rd, 2013
  • Comments Off on Power tariff rise for Lahore, Gujranwala consumers approved
National Electric Power Regulatory Authority (Nepra) has approved from 10 to 100 percent increase in power tariff for domestic and industrial consumers of Gujranwala Electric Power Company and Lahore Electric Supply Company (Lesco). According to tariff determination, tariff for lifeline consumers who use 50 units in a month has been raised by 33 percent to Rs 4 per unit from Rs 3 per unit.

Domestic consumers who consume 1-100 units in one month will have to pay Rs 2.6 per unit more than the existing tariff, showing an increase of 27 percent. Tariff for consumers who use 101-300 units has been increased by 15 percent to Rs 15 percent unit from Rs 13.55. Consumers who use 301-700 units will have to pay Rs 1.45 per unit more than the existing tariff as their tariff has been increased by 9.7 percent. Tariff for consumers who are using above 700 units in a month has been increased by Rs 2.5 per unit to Rs 19 from 16.5 per unit.

The rate of Time of Use (ToU) peak has been increased to Rs 19 percent from Rs 15 where off peak hours tariff will be Rs 12.5 per unit as compared to Rs 9.5 per unit. The tariff for B1 industrial consumers has been raised by 3.5 paisa to Rs 15.5 from Rs 12 per unit. Power rates for other categories have been increased by Rs 8.5 per unit, Rs 2.5 per unit and Rs 5.7 per unit respectively.

Vice Chairman Nepra, Shaukat Ali Kundi, in his additional note has observed that Gepco failed in meeting different deadlines by the Authority for installing ToU meters. The last such date was June 30, 2012. Despite various clarifications by Gepco, it still failed to meet the deadlines. The Authority in its wisdom had extended the deadline till March 31. Such short deadline would definitely put pressure on Gepco in terms of expediting the installation process, yet in no way would it be able to complete the remaining ToU meters by March, 2013. A final deadline for Gepco is required along with the decision that any tariff category, other than TOU metering, for above 5kw (Connections eligible for ToU metering) would cease to exist.

Gepco has requested 11 percent losses, whereas its actual losses are higher that the requested figure. The Authority while acknowledging the failure of Gepco to achieve target loss of 2011-12, has again maintained the same for 2012-13 ie 10.5 percent meaning thereby that there was no target for the Disco to improve upon the T&D losses during these years which is not justified. Gepco must reduce the losses every year till it brings down its T&D losses to less than 10 percent as in the case of IESCO.

The impact of installing ToU meters on revenue of Gepco has been discussed and Nepra has agreed to rationalise the peak and off-peak rates. "I feel that the issue demands detailed evaluation of the claim of Gepco that the ToU meters have impacted negatively on its revenue. The reasons and extent of any changes made to peak and off-peak rates have not been explained clearly in the determination. The Authority needs to further provide explanation, clarification on this particular aspect of the determination," he added.

Nepra has also increased power tariff for lifeline consumers of Lesco from Rs 2 to Rs 4 (100 percent). Increase of consumers using 1-100 units is Rs 4.24 per unit from Rs 6.85 to Rs 11.09 per unit. Tariff has been increased by Rs 5.7 per unit for users of 101-300 units. Next category (301-700 units) will have to face brunt by paying an additional Rs 6.35 per unit. The consumers who use above 700 units a month will pay Rs 4.71 per unit more than the existing tariff. Tariff for ToU peak and off peak hours has been raised by Rs 5.75 per unit and Rs 5.58 per unit.

The tariff for Iesco consumers has been increased as follows: (i) 50 units - Rs 2; (ii) 101-300 units- Rs 5.5 per unit; (iii) 301-700- Rs 6.35 per unit; (iv) above 700 units- Rs 6 per unit. ToU peak and off peak hours Rs 5.75 per unit and Rs 5.8 per unit. Industrial - B1- Rs 5.6 per unit, B2 peak- 10.51 and B2- off peak Rs 1.42 per unit. Commercial A2- Rs 5 per unit to Rs 18 from Rs 13 per unit.

Copyright Business Recorder, 2013


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