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The National Electric Power Regulatory Authority (NEPRA) has directed DISCOs and K Electric to meticulously review their records and rectify any inaccuracies in the Maximum Demand Indicator (MDI) data stored in their historical files. This directive aims to prevent overcharging of fixed fees based on erroneous MDI calculations.
According to NEPRA, complaints have been received regarding the imposition of fixed charges linked to MDI. NEPRA clarified that as per their tariff guidelines published in the official gazette, “Billing Demand” should be either 25% of the sanctioned load or the actual maximum demand recorded in a month, whichever is higher. Exceptions apply, such as for agriculture tariff D2, where “billing demand” strictly refers to the sanctioned load.
For new connections or those renewing/revising their sanctioned load, fixed charges will apply based on 25% of the sanctioned load or the actual maximum demand of the month, whichever is higher, until MDI is established within six months, whereupon adjustments will be made accordingly by the DISCO.
NEPRA highlighted instances where consumers were previously incorrectly charged based on MDI, resulting in subsequent adjustments to withdraw excess fixed charges. However, despite corrections made in billing, historical data or master files were not updated with the accurate MDI information. Consequently, consumers continue to be billed incorrectly based on outdated MDI records, due to the automated retrieval of MDI from the past 60 months by computer software.
In response to these issues, NEPRA has mandated all DISCOs to conduct a thorough audit of their records and rectify any inaccuracies in the historical data or master files related to MDI. This measure is intended to prevent excessive fixed charge billing based on erroneous MDI data, ensuring fair and accurate billing practices across the board.
