The National Electric Power Regulatory Authority (NEPRA) has allowed power distribution companies (DISCOs) and K-Electric (KE) to collect an additional Rs1.743 per unit from electricity consumers over the next three months, from September to November 2024.Â
This increase aims to recover Rs43.23 billion through quarterly tariff adjustments for the fourth quarter of FY 2023-24, covering the period from April to June 2024.
During a public hearing on August 26, chaired by NEPRA Chairman Waseem Mukhtar, DISCOs attributed the need for adjustments primarily to lower-than-expected sales during the quarter.Â
NEPRA noted that some DISCOs, including PESCO, reduced their power demand by opting for load shedding, lowering their capacity charges and contributing to lower sales. These companies had initially requested a collection of Rs1.9 per unit.
The Central Power Purchasing Agency (CPPA), representing DISCOs, sought Rs51 million for legal charges as part of the quarterly adjustment, which NEPRA rejected. The regulator stated that legal costs are already included in the Market Operation Fee (MoF), for which Rs500 million had already been approved for FY 2023-24.
Additionally, CPPA included Rs72.23 million in its plant-wise data for KAPCO tax differential charges, covering the period from July to October 2022. However, NEPRA declined this request. An adjustment of Rs73.18 million for a PPIB fee charged by CPPA-G to DISCOs was also withheld, as the issue remains under separate consideration by the authority.
NEPRA approved a positive adjustment of Rs43.23 billion for variations in capacity charges, variable O&M, additional recovery on incremental sales, use of system charges, market operator fees, and FCA impact on transmission and distribution losses for the fourth quarter of FY 2023-24. This adjustment will be collected at a uniform rate of Rs1.743 per unit from all consumer categories except lifeline consumers.
In a separate decision, NEPRA directed DISCOs to refund Rs0.369 per unit to consumers in their September 2024 bills, reflecting the monthly Fuel Charges Adjustment (FCA) for July 2024. This refund will apply to all consumer categories except lifeline consumers, domestic users consuming up to 300 units, Electric Vehicle Charging Stations (EVCS), prepaid tariff users, and agriculture consumers. The negative FCA adjustment will also apply to domestic consumers with Time of Use (ToU) meters, regardless of consumption levels.
