ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) has approved distribution and supply tariffs under the multi-year tariff (MYT) regime for five years from 2023 to 2028 for three major power distribution companies (Discos).
These power distribution companies include Islamabad Electric Supply Company (IESCO), Lahore Electric Supply Company (LESCO), and Faisalabad Electric Supply Company (FESCO).
Under the MYT regime, NEPRA has meticulously assessed the revenue requirements of each Disco for the control period, with IESCO, LESCO, and FESCO needing Rs 39.66 billion, Rs 60.459 million, and Rs 44.490 billion respectively for FY2023-24.
These assessments are designed to cover the costs associated with distribution, ensuring the maintenance and improvement of distribution infrastructure.
Similarly, NEPRA has approved differential amounts as part of the Prior Year Adjustment (PYA) in the subsequent adjustment/indexation determination for FY2024-25.
IESCO, LESCO, and FESCO have been allocated differential amounts of Rs 7.426 billion, Rs 7.735 billion, and Rs 11.900 billion respectively for the said period, reflecting variances between forecasted and actual costs/revenues.
In addition to tariff approvals, NEPRA has emphasized the necessity of organisational restructuring within the DISCOs.
It has highlighted discrepancies in cost bifurcation and the submission of combined accounts for distribution and power supply functions without visible progress in restructuring.
Such organisational changes are crucial for enhancing operational performance and ensuring transparency within these companies.
This decision marks a pivotal moment in the management and operation of these DISCOs, emphasizing the importance of transparent and effective governance within the electric power sector.
Implementing MYTs underscores NEPRA’s commitment to balancing consumer interests with those of the service-providing companies. This aligns with the principles of transparency and impartiality outlined in the NEPRA Act, Section 7(6).
Furthermore, NEPRA has announced that a differential net amount of Rs 3.096 billion, inclusive of differential amounts for distribution, will be permitted as part of PYA in the subsequent adjustment determination for FY2024-25.
