Business
January 13, 2021
KARACHI: The government has decided not to include cross-subsidy and stranded costs into the electricity wheeling charges on industrial connections, it was learnt on Tuesday.
This will promote healthy competition and pressurise distribution companies to improve their performance.
Nepra said imposition of such costs would not only discourage wheeling regime in Pakistan but at the same time would also provide no incentive to discos to improve their performance in terms of reduction in transmission and distribution losses, minimise pendency of new connections and increase recoveries.
Wheeling target consumers are primarily industrial connections, which establish interconnection with relevant power distribution companies (discos) on self-finance basis and no cost in this regard is incurred by discos/ the Central Power Purchasing Agency (CPPA). Hence, there is no point for adding stranded costs on such industrial consumers. The cost benefit will help indust