Inflation-hit masses should get ready to bear a heavy jolt as the National Electric Power Regulatory Authority (NEPRA) on Thursday approved a mammoth hike in the power tariff by Rs7.91 per unit and asked the government to issue notification to this effect.
According to NEPRA, the increase of Rs7.9078 per unit is mainly due to increase in fuel prices, capacity cost and impact of rupee devaluation.
The tariff hike has been determined for the financial year (FY) 2022-23, which on national average is Rs24.82 per kilowatt hour (kWh), higher by Rs7.9078 per kWh than the earlier determined national average tariff of Rs16.91 per kWh, said NEPRA.
The NEPRA added that the uniform tariff so determined by NEPRA after incorporating the amount of subsidy/ surcharges, intimated by the Government of Pakistan (GoP), is forwarded to the GoP for notification.
“The tariff once notified is then charged to the consumers,” reads NEPRA brief on power distribution companies (DISCOs) tariff.
As per NEPRA, DISCOs including Multan Electric Power Company (MEPCO), Gujranwala Electric Power Company (GEPCO), Hyderabad Electric Supply Company (HESCO), Sukkur Electric Power Company (SEPCO), Quetta Electric Supply Company (QESCO), Peshawar Electric Power Company (PESCO) & Tribal Electric Supply Company (TESCO) filed multi-year tariff petitions for the FY 2020-21 to FY 2024-25 while Islamabad Electric Supply Company (IESCO), Lahore Electric Supply Company (LESCO) & Faisalabad Electric Supply Company (FESCO) filed annual adjustment/indexation request under the already allowed multi-year tariff.
Energy Purchase Price is projected as Rs1,152 billion, while capacity charges including NTDC and HVDC cost is projected as Rs1,366 billion and total revenue requirement of DISCOs including DISCOs margin and Prior Year Adjustment (PYA) is projected as Rs2,805 billion with projected sales of 113,001 GWh.
It is also learnt that MEPCO, GEPCO, HESCO, SEPCO, QESCO, PESCO & TESCO have been allowed an investment of around Rs406 billion for their distribution investment program for the five years period while DISCOs allowed T&D losses have been reduced from 13.46% to 11.70% for the FY 2022-23.
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