Q4 of 2020-21: Nepra slashes Discos’ uniform tariff by Re0.99

ISLAMABAD: National Electric Power Regulatory Authority (Nepra) has reduced Discos uniform tariff by Re 0.99 per unit for fourth quarter (April-June) 2020-21 under Quarterly Tariff Adjustment (QTA) mechanism.

The Authority held a public hearing on November 11, 2021 to quiz the officials of Discos for the figures submitted for adjustment in their QTA.

According to Nepra, for working out the quarterly adjustments for the 4th quarter of the FY 2020-2 1, the information provided by CPPA-G and the requests filed by Discos were considered.

The Authority in the determinations of CPPA-G Market Operation fee observed that CPPA-G reflects the costs incurred on account of legal/ litigation charges in the capacity costs billed to Discos. In view thereof, CPPA-G was directed to include the cost in its market operation fees and get it approved from the Authority. CPPA-G, in the costs billed to Discos for the 4th quarter of the FY 2020-2 1 has included legal charges of Rs.31.8 million as part of capacity charges. The Authority, consistent with its earlier direction in the matter, decided not to include the amount of legal charges in the instant quarterly adjustments. Accordingly, while working out the proposed quarterly adjustments, the amount of legal/ litigation charges was not considered.

Rs1.39/unit hike in base tariff imminent

After going through the available documents, the Authority has determined a negative uniform rate of Rs.0.9908/kWh, for the allowed negative amount of quarterly adjustments of Rs.22.479 billion pertaining to the 4th quarter of the FY 2020-21, across each category of consumers of Discos (except lifeline and protected category consumers), based on notified projected sales, after excluding the sales to lifeline and protected category consumers, to be recovered in three months period from February 1, 2022.

The Authority in its decision of December 01, 2020, in the matter of motion filed by the Ministry of Energy (Power Division) with respect to recommendations of Support Package for additional consumption and abolishment of Time of Use (ToU) tariff scheme for industrial consumers of Discos, decided that no quarterly adjustments would be passed on to B1, B2, B3 and B4 industrial consumers to the extent of incremental sales till continuation of the instant package.

Copyright Business Recorder, 2021