Nepra under scrutiny for power sector adjustments

The power sector in Pakistan is facing scrutiny over the monthly adjustments and charges imposed on consumers. The National Electric Power Regulatory Authority (Nepra) conducts public hearings to consider requests by the Central Power Purchasing Agency—Guaranteed (CPPA-G) and distribution companies (DISCOs). However, these hearings rarely result in cancellations, leading to concerns about the transparency of the process. The adjustments, including Monthly Fuel Price Adjustment (MFPA) and Quarterly Tariff Adjustments (QTAs), are meant to cover variations in costs such as fuel prices, inflation, and operational expenses.

The MFPA, introduced in 2010, was initially beneficial as it led to deductions in consumer bills due to falling oil prices. However, the recent depreciation of the Pakistani Rupee against the US Dollar has resulted in increased charges for consumers. The QTAs, on the other hand, cover a range of factors affecting costs, but questions have been raised about the accuracy and necessity of these adjustments.

Nepra's role in auditing and approving these requests is crucial, but concerns have been raised about the thoroughness of the process. The average monthly addition to consumer bills due to these adjustments is around Rs. 4 per unit, adding to the financial burden on consumers already grappling with inflation.

In conclusion, the power sector's monthly adjustments and charges have become a contentious issue, with consumers bearing the brunt of increasing costs. The lack of transparency and accountability in the process raises questions about the fairness of these adjustments and the need for greater oversight to protect consumers' interests.