ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Thursday voiced serious concern over rising capacity charges — a major contributor to Pakistan’s high electricity tariffs — with Member (Technical) Rafique Ahmad Shaikh remarking that “only a miracle” could bring them down under current conditions.
The observation came during a public hearing on petitions filed by 11 distribution companies (Discos) for determining Use of System Charges (UoSC). Nepra’s panel, chaired by Chairman Waseem Mukhtar, rejected government proposals to launch wheeling without an approved standard cost framework. Member (Law) Amina Ahmed stressed that wheeling cannot proceed until Nepra formally approves grid charges and a standard cost plan.
Discos proposed a hybrid model combining volumetric and capacity-based charges, while industry representatives, including the Karachi Chamber of Commerce & Industry, warned that higher system charges could undermine competitiveness and burden exporters.
Nepra pledged to review all concerns before making a decision.
Story by Mushtaq Ghumman