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ISLAMABAD: The government is all set to further burden electricity consumers with monthly Fuel Cost Component (FCA) of Paisa 65 per unit for February 2021 and Paisa 91 per unit as Quarterly Tariff Adjustment (QTA).

On Tuesday, the Authority comprising Chairman Nepra Tauseef H. Farooqi Rafique Ahmad Shaikh (Member Sindh) and Rehmat Ullah Baloch held a hearing.

The positions of KP and Punjab are vacant as contracts of members from both provinces have recently expired.

Senior officials of Discos explained their claims of Rs 91,65 billion (paisa 91 per unit) as Quarterly Tariff Adjustment (QTA) for two quarters, i.e. from July to September and October to December 2000.

Discos have claimed Rs 44.709 billion as quarterly adjustment for July to September 2002, of which Rs 33.392 billion is on account of capacity purchase price, Rs 2.527 billion variable O&M, Rs 2.801 billion Use of System Charges (UoSC) and Market Operation Fee (MoF) and Rs 5.989 billion as impact of T&D losses on monthly Fuel Price Adjustment (FPA).

For second quarter, i.e., October to December, 2000, Discos have sought adjustment of Rs 46.658 billion, of which Rs 36.910 billion is on account of Capacity Purchase Price, Rs 2.661 billion variable O&M, Rs 3.789 billion UoSC & MoF and Rs 3.298 billion on account as impact of T&D losses on monthly FPA.

The data shared with Nepra indicates that Iesco has sought a cumulative adjustment of two quarters of Rs 7.409 billion, Lesco Rs 21.113 billion, Gepco Rs 7.741 billion, Fesco Rs 8.397 billion and Mepco Rs 13. 952 billion Pesco Rs 15.334 billion Hesco Rs 5.921 billion Qesco Rs 5.981 billion, Sepco Rs 6.834 billion and Tesco Rs 1.316 billion reduction. However, during the hearing a couple of Discos like Mepco and Qesco revised their figures.

During the course of hearing, the Authority enquired from CEO Mepco as to why losses in his Disco are higher compared to other Punjab based companies; the response was that the main reason for higher losses in Mepco are due to higher sales.

The Authority was also informed that losses in Sepco are 34 percent. In response to a question regarding proposed load shedding in summer, CEO, Sepco said the company wants to provide uninterrupted supply to consumers, but they do not pay bills. The losses in Hesco were also on higher side. However, all Discos claimed that they have shown improvement in recovery and reduction in losses.

Chief Executive Officer (CEO), Peshawar Electric Supply Company (Pesco), revealed that there are “no-go areas” in Peshawar, Banu and Kohat and Disco's anti-theft staff cannot raid sites after dark in these areas. However, during day time, staff visits sites and take action against theft with the help of designated police stations.

The Authority also conducted hearing on FCA for February 2021 to determine the claim of Paisa 65 per unit filed by CPPA-G to recover Rs 4.59 billion from consumers.

After scrutiny of claims Nepra's team stated that actual fuel charge component in February 2021 was Rs 4.7982/kWh whereas reference fuel charge component was Rs 4.1414/ kWh.

However, Nepra proposed a deduction of Rs 178.2 million from the claim due to deviation from Economic Merit Order (EMO), after the net FCA was determined at Paisa 63.13 per unit.

The Chairman Nepra clarified that if deduction of Rs 178.2 million is justified by the Nepra team, then increase will be Paisa 63.13 per unit and in case CPPA-G/NPCC can prove that their claims are accurate then raise will be Paisa 65.68 per unit.

The impact of FCA will be passed on to the consumers in bills of April 2021. However, collection of quarterly tariff adjustments of two quarters is the prerogative of the federal government.

Chairman Nepra further observed that the government may delay it till September 2021 to replace it with existing QTA and in that case the total impact will be Paisa 17 per unit.

In another hearing, Nepra quizzed Central Power Purchasing Agency-Guaranteed (CPPA-G) seeking Market Operation Fee (MoF) of Rs 2.79/KW per month for FY 2020-21 to generate Rs 900 million on different accounts. CPPA-G wants to purchase brand new vehicles for officers, new laptops and hire consultants. The Chairman Nepra and Member Sindh sought justification for the amounts sought under different heads. During the course of hearing, the issue of CPPA-G staff posted in Power Division also came under discussion.

Copyright Business Recorder, 2021


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