ACCORDING to media reports, the National Electric Power
Regulatory Authority (NEPRA) has questioned improvement in the power sector’s performance and presented a package of reforms to make it more efficient as per the vision of Prime Minister Imran Khan. The NEPRA chief advised a ban on trade unions in the power sector, handover of collection of bills to the private sector, closure of inefficient power plants and abolition of non-electricity taxation burden.
It seems NEPRA chief has done his homework well as the ills of the system pinpointed by him and the measures proposed to treat them have the potential to bring about not just improvement in the power sector but also mitigate woes of the consumers. Apart from theft of electricity, default in payment of the bills has also become a chronic problem involving billions of rupees per month. Privatization of billing and recovery of power bills would mean assured income to Discos, possible increase in revenues and also an effective check on power theft which is currently taking place with the connivance of the officials concerned. Similarly, privatization of loss-making power generation units would also mean lessening of burden on the power sector. Abolition of Rs 10 billion worth of Neelum-Jhelum surcharge also makes sense as the project stands completed but the addition of the levy in the power bills continues. Other non-power taxation comes to Rs 250 billion which, according to head of NEPRA, can translate into Rs 2.72per unit without taxes and Rs 3.43 per unit with taxes for up to 300 units of domestic consumers or about Rs 3.87 per unit on industry without taxes or Rs 4.87per unit with taxes. We hope that the Government would give serious thought to these recommendations because of their clear advantages.
NEPRA’s prudent proposals
