Even though National Electric Power Regulatory Authority (NEPRA) Chairman Khalid Saeed has tendered resignation from his post, the regulator plans to hold hearing on four separate petitions of the Central Power Purchasing Agency (CPPA) seeking a total increase of Rs 6.50 per unit in the power tariff of the distribution companies (DISCOs) under fuel price adjustment for the last four months on Tuesday.
According to an official source, Saeed had resigned from his post after controversy over his tenure. He was given additional charge of the NEPRA chairman on February 15, 2008 while he was still principal secretary to the prime minister.
The Cabinet Division later on notified his appointed for a four-year term from January 1, 2009. The Ministry of Water and Power, Planning Commission and Ministry of Finance all wanted calculation of his tenure from February 15, 2008, as the NEPRA chairman was reluctant to implement many of their plans. NEPRA Registrar Faqir Hussain confirmed that Saeed had resigned and his resignation was sent to the prime minister. He said he would continue his services until the matter of resignation was decided by the premier. He said the hearing on the four petitions of CPPA will be held as planned on March 20.
The petitions filed by CPPA seek an increase of Rs 2.23 per unit has been sought for October 2011, Rs 1.29 per unit for November 2011, Rs 0.98 per unit for December 2011 and Rs 1.96 per unit for January 2012 in the power tariff under the monthly fuel price adjustment mechanism. According to the source, the power reforms steering committee was of the opinion that the NEPRA chairman was holding the post illegally after February 15. The committee had serious reservations over the inclusion of fuel price adjustment in the power tariff by NEPRA. It put the burden entirely on the government to increase the power tariff from last fiscal year level of Rs 9.50 per kWh to Rs 12.60 per unit for the current fiscal year. The government notified tariff is Rs 7.84 per unit and the differential will end up in the subsidy. If the notified tariff is not increased then the subsidy will increase to Rs 4.70 per unit. DISCOs annually purchase around 82 billion units for power supply.
After the committee alleged that NEPRA was primary responsible for the power sector woes the regulator shocked the government by massively increasing the power tariff. NEPRA notified an increase in power tariff by 39 percent or Rs3.03 per unit under fuel cost for August 2011. The source said the government was of the opinion that since the continuation of NEPRA chief was illegal after February 15, the determination of the regulatory body could be reviewed. NEPRA on February 11 had rejected the government’s appeal seeking revision in the power tariff for the current fiscal year.
