NEPRA approves power tariff hike by Rs1.55 per unit

The National Electric Power Regulatory Authority has approved Rs1.55 per unit increase in the electricity tariff on account of periodic adjustment in tariff for the 2nd quarter of financial year 2021-22.

As per details, the allowed quarterly adjustment has an impact of around Rs.1.5547 per kilowatt hour (kWh) on a uniform basis on all consumers except for lifeline & increment industrial sales eligible for Industrial Support Package. Similarly, the Authority (NEPRA) has decided to apply the same with effect from July 1, 2022, to be recovered within three (03) months period from the date of notification. However, this increase in the electricity tariff will not be applicable to lifeline consumers and the consumers of K-Electric.  Furthermore, NEPRA has also sent its decision to the federal government, prior to its notification in the official gazette as per Section 31(7) of the NEPRA.

According to a brief on NEPRA decision in the matter of request filed by power distribution companies (DISCOs) for periodic adjustment in tariff on account of variation in capacity charges, variables Operation and Maintenance (O&M), use of  system charges, market operator fee and Fuel Charges Adjustment (FCA) impact of Transmission and Despatch (T & D) losses etc for the 2nd quarter of FY 2021-22, the Authority (NEPRA) has approved positive amount of Rs39 billion on account of Quarterly Adjustment pertaining to 2nd Quarter of FY 2021-22 for DICSOs.

Based on the adjustment mechanism, as prescribed in the notified tariff, NEPRA has already determined quarterly adjustments of XWDISCOs till June 2021.And, DISCOs, now in line with the prescribed quarterly adjustment mechanism, filed their adjustment requests for the 2nd quarter of the FY 202 1-22 i.e. from October to December 2021. NEPRA’s hearing in the matter was held on April 28, 2022.

Since the adjustment is being made in the already notified Uniform tariff, therefore, the Authority has determined the impact of 2nd quarterly adjustment on uniform basis along-with DISCO wise rate, which shall be reflected in the monthly bills of consumers of all DISCOs, and any excess /less adjustment would be settled between DISCOs at CPPA-G level.

The Authority has determined a positive uniform rate of Rs.1.5547/kWh, as mentioned hereunder for the allowed positive amount of quarterly adjustments of Rs.39,001 million pertaining to the 2nd quarter of the FY 2021-22, across each category of consumers of DISCOs (except lifeline consumers), based on notified projected sales, after excluding there from the sales to life line consumers, to be recovered in three (03) months period, w.e.f. 01.07.2022.

It is pertinent to mention that no quarterly adjustments would be passed on to B1, B2, B3 and B4 industrial consumers to the extent of incremental sales till continuation of the instant package, in line with the Authority’s decision dated 01.12.2020.