Large Consumers May Face Higher Electricity Bills

Power consumers in Pakistan could see increased costs for utilizing shared electricity infrastructure under proposed changes from the National Electric Power Regulatory Authority (NEPRA), focusing on grid sharing, dedicated equipment, and temporary connections. NEPRA has suggested amendments to the Consumer Service Manual that would alter how distribution companies manage connections for high-rise buildings, industrial, and commercial users, as well as rules for temporary disconnections.

Additionally, NEPRA is considering eliminating the requirement for electric vehicle charging stations post-government deregulation of their sales margins.

Key adjustments include treating certain multi-storey buildings as grid-sharing customers, with those requiring a dedicated transformer above 500 kVA facing grid sharing charges, including residential buildings previously exempted. Large industrial and commercial consumers would gain more flexibility to obtain up to three connections at a single location, provided the existing grid station has sufficient capacity and technical feasibility.

Consumers requiring more than 5 MW would be responsible for all grid sharing and transmission costs.

Proposed charges include Rs. 8.948 million per MW, plus land costs estimated at Rs. 0.855 million per MW based on the consumer’s load. If a consumer's load surpasses 15 MW, a dedicated grid station and transmission line would be necessary, with prior grid sharing, transmission line, and land charges refunded once transitioned. NEPRA also intends to revise requirements for dedicated transformers, 11 kV feeders, and rehabilitation work.

Connections up to 1 MW would incur relevant equipment and rehabilitation charges, while those between 1 MW and 2.5 MW would be charged based on actual costs, including meeting technical standards.

Temporary disconnections would require consumers to reapply before the approved period ends; otherwise, they will be automatically reconnected, incurring applicable charges. Consumers would be allowed multiple temporary disconnections but must pay fixed charges for at least one month before requesting another. A uniform approach for detecting bills in cases of registered consumers with suspected meter or billing manipulation is proposed, with distribution companies able to recover charges for up to 12 months in bogus meter or software manipulation cases.

Detection periods would be calculated based on the consumer's load rather than historical consumption, with domestic consumers facing a maximum of six months.