ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved positive adjustment of 47 paisa per unit in Discos tariffs to recover additional amount of Rs 15.454 billion from consumers during second quarter of current fiscal year under Quarterly Tariff Adjustment (QTA) formula.
The positive adjustment will be recovered in April, May and June 2023. However, 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 package, in line with the Authority’s decision of December 01, 2020.
The Nepra held a public hearing on February 22, 2023, which was attended by the representatives of business community and others.
Feb FCA: CPPA-G seeks positive adjustment in Discos’ tariff
The CPPA-G submitted that it is engaged in local and international legal proceedings in its capacity as agent of Discos, the litigation charges incurred by the CPPA-G on behalf of Discos are passed on to Discos in accordance with the Article III of Power Procurement Agency Agreement (PPAA) between CPPA-G and Discos dated June 03, 2015.
The CPPA-G in its data included amount of Rs 91.7 million on account of capacity charges of Kapco. The Authority noted that Kapco’s PPA was amended by CPPA-G, wherein it was agreed that plant will be operated without payment of capacity charges from July 2021 onward and only energy charges would be paid.
Upon inquiry from the CPPA-G regarding inclusion of capacity charges of Rs 91.7 million of Kapco, it was submitted that claimed cost is on account of truing up of costs pertaining to previous periods as per the PPA.
The CPPA-G, although provided some detail in this regard, however, the Authority has decided to provisionally not consider the claimed amount of Kapco and would consider it in the subsequent quarterly adjustments, once the same is verified. Accordingly, the amount of Rs.91.7 million has been deducted from the claim of Discos.
The Authority decided to restrict the amount of quarterly adjustment for the second quarter of FY 2022-23, as requested by the Discos on account of variation in capacity charges, variable O&M, Use of System Charges (UoSC) and Market Operator Fee (MOF).
Regarding FCA impact on T&D losses, since the Authority’s decision in the matter of monthly FCA for December 2022 was not finalised till the submissions of quarterly adjustment requests by Discos, therefore, it has been worked out based on the approved monthly FCAs.
Similarly, for working out the impact of recovery of fixed cost on incremental sales, the data of incremental units as provided by the CPPA-G has been considered, as few of the Discos did not provide the required information in their adjustment requests.
Copyright Business Recorder, 2023
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