NEPRA fines DISCOs for load-shedding

In Business
April 05, 2024


The National Electric Power Regulatory Authority (NEPRA) has imposed a fine of Rs50 million on each power distribution company (Disco) involved in load shedding during May and June 2022.

The power regulator imposed the fine after completing its investigation into commercial load shedding. Nepra stated that fines have been imposed on Peshawar Electric Supply Company, Kanpur Electricity Supply Company, Hyderabad Electric Supply Company, Sukkur Electric Power Company, and K-Electric, adding that commercial load shedding violates the Nepra Act.

According to Nepra, each Disco engaged in commercial load shedding for four to sixteen hours. In 2022, Nepra took notice of widespread load shedding nationwide and initiated legal action against the discos.

The power regulator held two hearings and provided ample opportunity for all DISCOs to defend themselves. Nepra directed the discos to disconnect electricity for consumers not paying bills, while also instructing them not to disconnect electricity from entire feeders.

Nepra highlighted that in the summer of last year, Discos were found involved in load shedding on a commercial basis. It further noted that distribution companies resorted to commercial load shedding in an attempt to reduce their line losses. Last week, the power regulator approved an increase of Rs2.7492 per unit in electricity tariffs on account of a second quarterly adjustment for financial year 2023-24. The quarterly adjustment will have a total impact of Rs85.2 billion on consumers for the October-December period of FY24. The currently applicable two quarterly adjustments of Rs4.43 /kWh shall cease to exist from March 30, 2024. While considering the interest of consumers, Nepra decided to apply the second quarterly adjustment from April 2024 onwards, ie, after the expiry of the existing quarterly adjustments.

Published in The Express Tribune, April 5th, 2024.

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