Nepra announces Audit of Discos’ Security Deposit Rates
Staff Report :
The National Electric Power Regulatory Authority (NEPRA) announced it would delay its decision on the proposed hike in security deposit rates until a full audit of the current deposits charged by power distribution companies (Discos) is completed.
The Discos were criticized by NEPRA for requesting significant increases in security deposit rates, which were allegedly supported by the Power Division.Nepra Takes Notice of Loadshedding During Exams
NEPRA felt the arguments were repetitive and lacked strength, viewing the proposed hike as an attempt to pass the burden of the Discos’ inefficiencies onto consumers.
NEPRA clarified that any increase in security deposits must be applied uniformly across the country, requiring K-Electric and Sukkur Electric Supply Company (LESCO) to submit similar petitions.
The proposal to raise security deposits significantly faced strong opposition from various groups.
Mathar Niaz Rana, NEPRA’s Member (Tariff), raised concerns about discrepancies in current deposit rates, which NEPRA’s audit team had already identified in three Discos.
NEPRA also warned that increasing security deposits could push consumers toward alternatives like solar power, reducing demand for Discos’ services. Irfan Butt from Gepco acknowledged this shift.
Barry and others pointed out that Discos were inflating their sanctioned loads, driving up security deposits. NEPRA’s report confirmed that the sanctioned load was far higher than the peak demand, meaning consumers were overcharged.
Rafique Ahmad Shaikh, NEPRA’s Member (Technical), stated that NEPRA would not approve the increase without clear improvements in service, including an end to the 10-15 hours of load shedding. NEPRA will wait for the final audit report before making a decision.
Shaikh criticized the Discos’ case, reaffirming NEPRA’s commitment to holding them accountable and ensuring consumer interests are prioritized.
For now, the Discos’ push for higher security deposits remains on hold, pending the outcome of the audits and the resolution of key issues regarding the Discos’ efficiency.
