ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has allowed power distribution companies (DISCOs) to collect up to an additional Rs 4.46 per unit from electricity consumers on account of periodic adjustment in tariff for the first quarter of Financial Year (FY) 2022-23.
The power regulator on November 15, 2022, held a public hearing on requests filed by DISCOs for the periodic adjustment. According to NEPRA’s decision, DISCOs will collect Rs 1.49 per unit to Rs 4.46 per unit from different categories of power consumers under the head ‘periodic adjustment in tariff’ which will be charged during the next two months, that is, February and March 2023.
This hike in power tariff will be applicable on all categories of power consumers except lifeline consumers and the consumers of K-Electric (KE).
As per NEPRA’s decision, the ministry of energy (MoE) requested that the adjustment be recovered without changing consumer rates – which the power regulator accepted.
“This is being done in the interest of the consumer as the determined first quarterly adjustment will only replace the existing applicable quarterly adjustment rates and there will be no additional burden on the consumers,” read the NEPRA decision.
The hearing was attended by the MoE, the power division, DISCOs, the Central Power Purchasing Authority (CPPA-G), and other stakeholders, as well as members of the media and the general public.
DISCOs, in their petition, sought adjustment of variation in capacity charges, variable operation and maintenance (O&M), use of system charges and market operator fees. And, in order to work out the instant quarterly adjustments of DISCOs, NEPRA obtained details of actual power purchase cost billed by CPPA-G to DISCOs for the period.
NEPRA has determined a positive adjustment of Rs 41,938 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 transmission and distribution losses for the first quarter of FY 2022-23, which is July to September 2022, said NEPRA’s decision.
It is pertinent to mention here that quarterly adjustments would not be passed on to Bl, B2, B3 and B4 industrial consumers to the extent of incremental sales till continuation of the package, in line with the Authority’s decision dated December 1st, 2020.
NEPRA has sent its decision to the federal government prior to its notification in the official gazette as per section 31(7) of the NEPRA Act.
