Islamabad, July 10, 2013 (PPI-OT): Finance experts from Pakistan’s government-owned electricity distribution companies (DISCOs), National Electric Power Regularity Authority (NEPRA) and United States Agency for International Development (USAID) met in Islamabad to discuss the issues involved in tariff petition preparation and develop strategies for their improvement.
The rate-setting process in Pakistan starts with submission of a tariff petition by licensees to NEPRA. Since DISCOs began filing tariff petitions as independent entities, there have been numerous problems, misunderstandings and a general lack of clarity regarding what the regulatory requirements of tariff petitions are and how they can be fulfilled.
This leads to the submission of inaccurate or incomplete information which contributes significantly towards increasing the time taken by NEPRA to issue its determination on the tariff petition. In 2012, the regulatory lag or delay in tariff determination and notification resulted in adding a significant amount to the circular debt.
While the USAID Power Distribution Program is working jointly with NEPRA and DISCOs in other areas to reduce this regulatory lag, it was felt that a tariff petition submitted as per NEPRA’s requirements supported by all the relevant data in the requisite format, will greatly help in reducing this regulatory lag.
Therefore, this workshop was held to discuss the tariff petition and accompanying data requirements, to demonstrate how DISCOs can fulfil these accurately and efficiently. It is expected that this will go a long way toward the capacity building of DISCOs and help them in filing tariff petition on time along with supplying accurate data. Consequently, this will, to a significant extent, resolve the delays in tariff determinations.
The USAID Power Distribution Program is a five year, USAID-funded program aimed at working jointly with DISCOs in Pakistan to improve their performance in terms of a reduction in losses, and improvement in both revenues and customer services, to bring them to the level of well-run utilities in other progressive countries.
Through this program, the United States Government provides assistance and support to the Government of Pakistan in its efforts to reform the power sector to end the current energy shortfall. More information can be solicited from the Program’s website: http://pdip.pk
For more information, Contact:
Zia Ur Rehman
USAID Power Distribution Program
Tel: +92 51 2270911-916 Ext (106)
Fax: +92 51 8312997
Mobile: +92-334 513 0 950