Nepra notifies draft performance standard rules for distribution, supply companies

KARACHI: The National Electric Power Regulatory Authority (Nepra) has drafted guaranteed standards of performance to place service level requirements upon electricity distribution companies; and the performance standards for electricity supply companies in the country.

The proposed performance standards provide the underlying indicators for metering, billing and complaint handling mechanism for electric power suppliers.

In addition, these standards also provide safety of electric power supply that an electric power supplier is minimally required to ensure at the time of supply to its consumers.

“Any non-compliance of these regulations by an electric power supplier would be liable to imposition of a fine, as provided under section 27B of the Nepra Act,” draft standards note.

“The fines imposed under this regulation shall be indexed to the Consumer Price Index (CPI) published from time-to-time by the Federal Bureau of Statistics.”

Under the proposed performance standards regulations, Nepra may periodically monitor the compliance of each electric power supplier with these regulations; send teams in the field and verify the data submitted by the electric power supplier; conduct a performance audit every year to assess the performance of electric power supplier.

The authority may also require the electric power supplier to undertake an independent performance audit at the electric power supplier’s expense, for the purpose of monitoring the same.

On the other side, a distribution company will ensure that the System Average Interruption Frequency Index (SAIFI) of the power supply/consumer/annum does not exceed the limit as determined by Nepra on an annual basis.

“The limit shall be determined by the authority on the basis of 5 per cent reduction over the mean value of five years historical data of SAIFI.”

The draft performance standards regulations provide that in the event of planned power supply interruptions, a written notice will be served by the distribution company to all the affected consumers at least 48 hours in advance of any such planned interruption, excluding defence establishments where the planned power supply interruptions will only be taken through mutual agreement.

Overall, these standards provide the underlying indicators of assessment of supply reliability, quality of supply, and safety of electric power supply that a distribution company provides to its consumers.

In addition, these standards also provide time required for a connection to a new consumer; and principles and priorities of the outages for the distribution companies.