NEPRA delays decision on transferring above Rs 22bn burden to all power consumers

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Tuesday reserved its decision on shifting a burden exceeding Rs 22 billion to all the electricity consumers of the country.

Earlier, power distribution companies (XWDISCOs) filed request with NEPRA for adjustments on account of capacity charges, transmission charges & market operator fee, the impact of incremental units and impact of T & D losses on FCA and variables operation & maintenance charges for the 1st quarter of FY 2023-24 i-e July to September 2023, in line with the notified mechanism in this regard. And, the NEPRA on Tuesday conducted hearing on the application of XWDISCOs under the chairmanship of NEPRA chairman Waseem Mukhtar and announced that it would issue final decision later.

NEPRA officials, during the course of hearing, said that XWDISCOs have sought a total increase of more than Rs22 billion and 56 crore and its impact will come depending on which month this quarterly adjustment is received from the consumers. They said if the increase in power tariff is approved then the power tariff hike in the next three months will be around Rs 1.25 per unit. They said XWDISCOs reduced power purchase in July, August and September as their purchase of power was decreased by 9.50 percent. XWDISCOs purchased total 38 billion units instead of 42 billion, said NEPRA officials.

Adjustments could have been negative if the figures were as per reference cost, they added.

Responding to a question, NEPRA officials clarified that increase in power tariff will be applicable to all customers across the country under quarterly adjustment because uniform increase will be applied across the country on the direction of the federal government. They said that implementation of quarterly adjustments in the case of K-Electrics faced delays. They said difference of K-Electric’s quarterly adjustments between the adjustments of the DISCOs is paid by the federal government with subsidy. Final decision regarding power price hike will be issued later, said NEPRA Authority at the end of public hearing on quarterly adjustment sought by the XWDISCOs on account of variation in Power Purchase Price (PPP) for the 1st quarter of fiscal year 2023-24.

According to a summary of adjustment requested by XWDISCOs, the WXDISCOs requested total Rs 12,126 million amount on account of capacity charges for the 1st quarter of FY 2023-24 i-e July to September 2023, in line with the notified mechanism in this regard.

As per details, FESCO has sought Rs 3,639 million amount on account of capacity charges, HESCO requested Rs 9 million amount, IESCO Rs 3,743 million, LESCO Rs 10,450 million, SEPCO Rs138 million and TESCO Rs 927 million while GEPCO requested Rs 620 million cut under the head capacity charges, MEPCO Rs 2,754 million reduction, PESCO Rs 93 million decrease, QESCO Rs 3,313 million cut on account of capacity charges.

Similarly, the ten XWDISCOs requested Rs 4,617 million amount on account of variable O&M charges as FESCO sought Rs1,033 million, GEPCO Rs 471 million, HESCO Rs188 million, IESCO Rs306 million, LESCO Rs 1,021 million, MEPCO Rs 788 million, PESCO Rs488 million, QESCO Rs 173 million, SEPCO Rs 149 million and TESCO asked for Rs 40 million under the same head of variable O&M charges.

Likewise, WXDISCOs advocated for total Rs4,617 million amount under the head UoSC & MbF as FESCO requested Rs 1,528 million amount, GEPCO Rs918 million, HESCO Rs665 million, IESCO Rs 1,190 million, LESCO Rs 2,650 million, MEPCO Rs1,433 million, PESCO Rs 1,004 million, QESCO Rs198 million, SEPCO Rs 358 million and TESCO Rs303 million on account of UoSC & MbF.

Furthermore, XWDISCOs pleaded for total Rs 6,617 million amount on account of impact of T&D losses on monthly FCA as FESCO requested Rs 640 million amount, GEPCO Rs560 million, HESCO Rs496 million, IESCO Rs548 million, LESCO Rs1,124 million, MEPCO Rs1,253 million, PESCO Rs1,260 million, QESCO Rs317 million, SEPCO Rs367 million and TESCO Rs52 million.

It is also learnt from the summary of adjustment requested the XWDISCOs that FESCO has requested total Rs 4,189 million amount on account of capacity charges, transmission charges & market operator fee, the impact of incremental units and impact of T & D losses on FCA and variables operation & maintenance charges for the 1st quarter of FY 2023-24 i-e July to September 2023, in line with the notified mechanism in this regard. GEPCO sought total Rs 396 million decrease, HESCO Rs 1,056 million, IESCO Rs 5,542 million, LESCO Rs 10,308 million, PESCO Rs2,096 million, SEPCO Rs 926 million, TESCO Rs 1,196 million while MEPCO requested Rs 520 million reduction, PESCO Rs 926 million amount and QESCO Rs 2,625 million decrease on account of capacity charges, transmission charges & market operator fee, the impact of incremental units and impact of T & D losses on FCA and variables operation & maintenance charges for the 1st quarter of FY 2023-24 i-e July to September 2023, in line with the notified mechanism in this regard.