Another increase in power tariff sought

The Central Power Purchasing Agency-Guaranteed (CPPA-G) has sought a 71-paisa per unit increase in tariffs of distribution companies (Discos) effective June 2018 to cover the cost of security under China Pakistan Economic Corridor power projects. This decision must be looked at within its historical context.

Prior to PML-N administration’s decision to bring regulatory authorities, including National Power Regulatory Authority (Nepra), under the administrative control of the line ministry namely the Water and Power Ministry later merged with the Ministry of Petroleum and Natural Resources to form the Ministry of Energy, Nepra had rejected the government proposal to allow one percent additional tariff as security cost for CPEC projects. The rationale for the rejection was quite cogent.

Published in Business Recorder, 20th July, 2018