ISLAMABAD: The federal government has filed a motion with the National Electric Power Regulatory Authority (Nepra) for recovery of two Quarterly Tariff Adjustments (QTAs) of Rs 6 per unit from the consumers of K-Electric.
Nepra is scheduled to hold a public hearing on April 3, 2023 to approve request of Power Division which has already been approved by the Economic Coordination Committee (ECC) of the Cabinet.
Of Rs 6 per unit proposed positive adjustment in QTA, Rs 4.45 per unit will be for first quarter of 2022-23 whereas Rs 1.55 per unit will be on account of fourth quarter of 2021-22.
According to federal government’s motion, the Nepra determined the Multi Year Tariff on July 05, 2018, for K-Electric Limited duly notified by the federal government on May 22, 2019.
Negative adjustment in KE’s Q2 QTA: Positive adjustment in Jan FCAs of Discos, KE approved
Subsequently, various quarterly tariff adjustments for KE were determined by the Authority. The last quarterly adjustment was notified by federal government through SRO 1037(l)/2020 as amended from time to time, to maintain uniform tariff in the country.
The Authority has determined periodic adjustment in tariff for the 1st quarter of FY 2022-23 for Discos and continued the application of periodic adjustment as determined for 4th Quarter of FY 202 1-22 for two months which was notified on February7, 2023.
Power Division argues that in accordance with the National Electricity Policy, 2021, the government may maintain a uniform consumer-end tariff for K-Electric and state-owned distribution companies (even after privatisation) through incorporation of direct/indirect subsidies.
Accordingly, the KE applicable uniform variable charge is also required to be modified so as to recover the revenue requirements of the KE, determined by the Authority, consistent with the uniform national tariff of Discos. This was approved by the federal government and it was decided that it should be submitted to the Authority for consideration in terms of the provisions of the Act.
After explaining the background, Power Division said that motion is being filed by the federal government with respect to consumer end tariff recommendations of the KE, under section 7, 31 (4) and 31 (7) of the Act read with Rule 17 of the Rules so as to reconsider and issue for KE a modified uniform variable charge to maintain uniform tariff across the country, and to recover the revenue requirements of the KE determined by the Authority keeping in view the proposed targeted subsidy and cross subsidies.
The Authority has been requested to issue separate Schedule of Tariff (SoT) with prospective application of applicable uniform rates after incorporating tariff rationalisation. Such adjustment shall be applicable on the consumption of February 2023 and March 2023 to be recovered from consumers in April 2023 and May 2023, respectively.
For application of rates charged from Discos consumers for the second quarter of FY 2021-22, in notification of July 7, 2022 to be allowed to be recovered from consumers of KE is based on consumption of July, August and September 2022 in the billing months of April, May and June 2023.
Copyright Business Recorder, 2023