ISLAMABAD: National Electric Power Regulatory Authority (Nepra) on Tuesday approved an increase of Rs 3.40 per unit in tariffs of power Distribution Companies (Discos) to recover additional amount of Rs 95.145 billion from consumers for 4th quarter of CFY 2021-22 under Quarterly Tariff Adjustment (QTA) mechanism.

The Authority comprising of Chairman Nepra, Tauseef H Farooqi, Member Sindh, Rafique Ahmad Shaikh and Member KP, Maqsood Anwar Khan officiated public hearing and quizzed Discos’ officials about their claims of capacity payment.

Discos’ in their tariff QTA adjustment sought on account of capacity charges, transmission charges and Market Operator Fee (MOF), impact of Transmission & Distribution (T&D) losses on FCA and variable operation and maintenance charges. The 4th quarter adjustment also includes the impact of additional recovery on incremental sales, i.e., April to June 2022 in line with the notified mechanism in this regard.

Of the total amount of Rs 95.145 billion, Discos claimed Rs 55.258 billion on account of Capacity Purchase Price, Rs 35.704 billion as impact of T&D losses on monthly FCA and Rs 14.167 billion on account of Use of System Charges (UoSC) & MOF, whereas companies have sought negative adjustment of Rs 1.745 billion as variable O&M and Rs 8.237 billion on account of impact of discounted rate on incremental sales.

Power quarterly adjustment: Record high

An official of CPPA-G noted that total amount of QTA adjustment was calculated at Rs 268 billion, of which Rs 172.855 billion was already built in the projected QTA and only Rs 95.145 billion will be passed on to the consumers during fourth quarter of FY 2021-22.

According to the petition, Islamabad Electric Supply Companies (IESCO) sought positive adjustment of Rs 8.729 billion, which includes positive adjustment of Rs 5.709 billion on account of Capacity Purchase Price (CPP), negative adjustment of Rs 198 million in variable O&M, positive adjustment of Rs 1.377 billion in UoSC & MOF, positive impact of Rs 2.269 billion as impact of T&D losses in monthly FCA and negative adjustment of Rs 425 million on account of impact of discounted rate on incremental sales.

Lahore Electric Supply Company (Lesco) has sought positive adjustment of Rs 17.816 billion of which Rs 12.448 billion is on account of Capacity Purchase Price.

Gujranwala Electric Power Company (Gepco) intends to pass on additional financial burden of Rs 9.257 billion of which Rs 6.210 billion is on account of capacity purchase, Rs 1.534 billion UoSC & MOF and Rs 2.673 billion impact of T&D losses on monthly FCA.

Faisalabad Electric Supply Company sought positive adjustment of Rs 11.624 billion, Multan Electric Power Company (Mepco) Rs 19.534 billion, Peshawar Electric Supply Company (Pesco) Rs 12.274 billion, Hyderabad Electric Supply Company (Hesco), Rs 5.298 billion, Quetta Electric Supply Company (Qesco) Rs 3.163 billion, Sukkur Electric Supply Company (Sepco), Rs 2.995 billion and Tribal Electric Supply Company (Tesco) Rs 3.708 billion.

Mepco submitted claims of Rs 19.530 billion, Pesco, Rs 12.274 billion, Hesco, Rs 5.298 billion, Qesco Rs 3.163 billion, Sepco Rs 2.995 billion and Tesco Rs 4.461 billion. During the hearing Chairman Nepra directed Tariff Section of Nepra to start displaying details of capacity charges from next hearing of QTA to keep the public updated on this issue.


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