ISLAMABAD – Rubber stamping another demand of the power Distribution Companies (Discos) regarding tariff hike, NEPRA on Monday notified passing on an additional burden of Rs2.7492 per unit, including the Capacity Charges (unutilised electricity) worth Rs75.137 billion, to the consumers on account of Quarterly Adjustments.
The decision will have a cumulative burden of Rs85.275 billion and will be recovered from the consumers of Discos and KE in the next three months (April to June).
“In pursuance of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (XL of 1997), NEPRA hereby notifies complete Decision of the Authority in the matter of Requests filed by XWIDISCOs for Periodic Adjustment in Tariff for the 2nd Quarter of FY 2023-24 already intimated to the Ministry of Energy (Power Division) on March 28, 2024. Accordingly, a rate of Rs2.7492/unit shall be recovered from different consumers/categories of XWDISCOs and K-Electric, in a period of three months ie April 2024 to June 2024,” said a notification issued here by NEPRA.
XWDISCOs had filed adjustment requests on account of variation in PPP, including impact of T&D losses, capacity charges etc., for the 2nd quarter of the FY 2023-24 ie from October to December 2023, having an impact of Rs85.309 billion on the consumers. However, after adjustments NEPRA has deducted a small amount and allowed the Discos to recover Rs85.275 billion from the electricity consumers, which also includes a huge amount of Rs75.137 billion on account of capacity charges (an electricity that was never supplied to national grid) to the IPPs.
The Authority has decided to restrict the amount of quarterly adjustment for the 2nd Quarter of FY 2023-24, as requested by XWDISCOs on account of variation in Capacity charges, Variable O&M, Use of System Charges and Market Operator Fee.
However, regarding FCA impact on T&D losses, the same has been worked out as per the Authority’s approved monthly FCAs decisions for the relevant months, as at the time of filing of quarterly adjustment request by DISCOs, approved FCA for the month of December 2023 was not available, said the notification. Similarly, for working out the impact of recovery of fixed cost on incremental sales, the data of incremental units as provided by CPPA-G has been considered, as few of the DISCOs did not provide The required information in their adjustment requests, the notification mentioned.
“The Authority has decided to allow the instant positive quarterly adjustments of Rs85,275 million on account of variation in Capacity charges, Variable O&M, additional recovery on Incremental sales, Use of System Charges, Market Operator Fee and FCA impact on T&D losses for the 2nd quarter of FY 2023-24. Per unit uniform rate will be Rs2.7492/kWh, to be applicable to all consumer categories, except lifeline consumers,” said the notification.
