ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) is reportedly delaying action on a Motion for Leave for Review (MLR) regarding its tariff decision for cold storage facilities. The MLR was filed by a Karachi-based citizen, Arif Bilwani, after the NEPRA Appellate Tribunal directed the regulator to rehear the case—placing the Authority in a challenging position.
Bilwani filed his MLR on December 30, 2024, under Rule 3(2) of the NEPRA (Review Procedure) Regulations, 2009, contesting the tariff classification applied to cold storage units.
In a recent letter to NEPRA’s Registrar, Bilwani noted that the Authority accepted his MLR only after an eight-week delay via a letter dated February 13, 2025. However, since then, there has been no further communication or scheduling of a hearing.
“It is difficult to comprehend the continued delay in scheduling the hearing, despite more than four months having passed since the MLR was accepted. Following the Authority’s initial decision, the Ministry of Industries & Production, the Federal Cabinet, and the ECC formally recognized cold storages as an industrial activity,” Bilwani wrote. He added that all relevant documents—including meeting minutes and official clarifications—were submitted to NEPRA on March 5, 2025.
Bilwani emphasized that the delay is causing significant financial harm to cold storage operators, who are being charged under the commercial tariff category—based on what he considers a flawed and contested decision.
In his original MLR, Bilwani pointed out that the decision in question was made using the Chair’s casting vote, despite dissenting opinions from two members, including the Member Legal. He argued that this raised serious concerns about fairness and procedural integrity.
He specifically cited Section 5(3) of the NEPRA Act, which mandates that members receive reasonable notice of meetings and the matters to be decided. He questioned whether such notice was provided to the Member Tariff, whose absence from the final meeting—despite consistent involvement in earlier deliberations—raises doubts about compliance with due process.
Bilwani also referenced his active participation in NEPRA’s public hearings throughout 2023 for several DISCOs, where he presented detailed arguments distinguishing modern cold storage facilities from traditional ones.
According to him, modern cold storages—equipped with advanced temperature and humidity controls—offer critical value-added services to both industrial and commercial sectors. These facilities contribute to food security, healthcare, and export enhancement. He noted that his statements and presentations during public hearings are available in NEPRA’s official audio/video records.
He further argued that the dissenting opinions of Member Legal and Member Technical aligned with his position, offering well-reasoned legal and technical perspectives. Ignoring these expert insights, he claimed, in favor of broader concerns like circular debt and subsidies undermines regulatory credibility.
Bilwani criticized NEPRA’s understanding of modern cold storage operations, particularly as outlined in paragraphs 10–12 of the original decision. He said NEPRA’s rationale overly simplifies cold storages as service providers for grocery chains and retailers, overlooking the complex electromechanical processes they employ.
He emphasized that modern cold storages involve substantial investment and technical infrastructure to: (i) preserve the physical, chemical, and nutritional properties of products; (ii) extend the shelf life of perishables through precision climate control; and (iii) support critical sectors like pharmaceuticals, which require highly regulated storage for active ingredients used in life-saving medications..
According to Bilwani, classifying these facilities as commercial consumers will drive up electricity costs, disproportionately impacting industries reliant on cold storage services. Exporters will face increased overheads, weakening their competitive edge in domestic and international markets. He also highlighted the Pharma sector’s dependence on cold storages for storing bulk quantities of critical raw materials, noting that any disruption in availability could pose serious public health risks.
He has urged NEPRA to expedite the review process and schedule a hearing without further delay.
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