Nepra excludes cross-subsidy cost from wheeling charges

KARACHI: The government has decided not to include cross-subsidy and stranded costs into the electricity wheeling charges on industrial connections, it was learned on Tuesday.

This will promote healthy competition and pressure distribution companies to improve their performance.

National Electric Power Regulatory Authority (Nepra) approved Wheeling of Electric Power Regulations 2016 to facilitate wheeling of power in the country.

However, different stakeholders voiced their concerns on the regulations in terms of treatment of transmission and distribution losses during wheeling. Power distribution companies said the CPPA bills them on a fixed cost basis whereas the consumer end tariff is volumetric in nature, thus, any consumers leaving discos would result in the recovery of fixed costs from the remaining consumers, hence, putting additional burden either on the remaining consumers or the same would be picked up by the government.

Read Also: Power Blackout: How did the power blackout happen in the country? Report submitted to Power Division

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